Going back to the roots. A Crypto 2022 sum up and thoughts for the future
In 1981, Odyssey released “Going back to my roots”. I’m literally sitting here and listening to it, while trying to figure out how to sum up a year that has shaken the crypto industry. Every time the industry is shaken, it gives us the opportunity to reiterate why we chose to come here in the first place, what we believe in, and the purpose of what we are trying to accomplish as an industry. Personally, I believe crypto and blockchain is the exchange of value, just like the internet became the exchange of information, and I believe their journey share many similarities. Bitcoin was created out of the 2008 financial crisis as a response to the broken Fiat experiment, which has been running for 51 years now. Bitcoin was created with the belief that the financial system should be better. However, 2022 showed us the ugly truth of when centralized entities are mismanaged and why Satoshi Nakamoto, the creator of the Bitcoin Network, was smarter than we thought (and we thought he was pretty damn smart in the first place). The industry suffers as a result of becoming the very thing it was created as a response to. It’s time to slam on the brakes, evaluate, and go back to the roots.2022 will be remembered as the year of “withdrawal halts”. It all started in May with the crash of Terra LUNA, an algorithmic stablecoin, that turned out to be poorly designed and ultimately led to a $60 billion wipe-out of the industry. The contagion quickly spread as a wild fire, ultimately bringing down financial corporations like 3AC, Celsius and Voyager as the biggest entities to suffer from the crash. As a result, the market naturally started to decline in value, removing around $1 trillion of its market-cap in a month. Despite the turmoil, it seemed like we were fine for a couple of months. The market stabilized and sentiments were strong. Remember, these scenarios happen in tech, in finance and even in any industry over time. It’s a part of the maturing process. After all, a revolution of this size takes decades to emphasize.
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