There have been several events around cryptocurrency, bitcoin and metaverse development that at first glance appear to be negative for the crypto industry, initiating uncertainty.
However, consider events more closely, and it becomes apparent that when taken from a broader perspective, any significant message they might contain about the state of crypto actually runs in a positive direction.
What some recent occurrences have in common is that they reinforce the importance of decentralization, illustrating its benefits and functionality, or underlining the fact that crypto is built to level the playing field, working in favor of ordinary people rather than for large corporate entities who are used to exercising disproportionate amounts of power.
DeFi Not CeFi
With the collapse of major crypto entities, such as Three Arrows Capital, Celsius and Voyager, some crypto skeptics presumed that we were witnessing a real-time demonstration of crypto’s fragility. Cynics took the opportunity to point out the irony in bitcoin having emerged in 2009 as an alternative to traditional finance’s unfolding catastrophes, only, within thirteen years, for crypto to have then repeated the mistakes it was intended to remedy.
This reading is not without merit, damaging behaviour from traditional finance was indeed replicated, but it aims its critical barrage at the wrong targets. It is not bitcoin, crypto as a whole, nor DeFi that crashed out in 2022’s contagious demolitions, but rather it is specific centralized operations that have proved faulty.
By contrast, decentralized protocols, such as Curve Finance and Aave, have continued to operate smoothly and as intended. What this bear market collapse has provided is a stark practical demonstration that DeFi is robust and neutral, while CeFi is vulnerable to corruption and recklessness. Quietly and without fanfare, decentralization comes out on top.
Tesla Sells, Retail Buy
News broke recently that Tesla had sold 75% of its bitcoin holdings at a loss, with the Founder and CEO, Elon Musk stating that due to uncertainty around covid lockdowns in China, “it was important for us to maximize our cash position.”
Again, this was taken as bearish, but at the same time, the market has absorbed any impact and, although there was a dip in…
