Ari Paul, founder of blockchain investment firm Blocktower Capital, weighed in on the bear market, comparing the situation to the tech crash of the year 2000. Paul compares Bitcoin (BTC) to Amazon, which is one of the companies that survived the market. to collapse.
In a Twitter thread, Paul indicated that while there are “modest” products on the crypto market, many improvements need to be made to reach the mainstream. Paul also argues that the adoption is “5 years behind” what many expected.
The executive also highlighted network outages on Solana, delays in expanding Ethereum and Bitcoin security, and future updates are overlooked during bull runs, but “feel very different” during a bear market, arguing that optimism would no longer suffice in this situation.
Following this, Paul compared the cryptocurrency market today to the Nasdaq market in 2000 and said that most cryptocurrencies are risky and early stage. However, the Blocktower founder stressed that there will be something like “Amazon” that will survive the crash. He thinks it could be Bitcoin.
According to Paul, Bitcoin has “much better odds” than other cryptocurrencies because it doesn’t have a competitor as a product and in terms of its technology. He tweeted that:
11/ what about bitcoin? Bitcoin is “separated” only because it is the only crypto asset that does not compete on technology or product. It is primarily competing on security/stability. So I’ve always thought that if Bitcoin fails, it’s probably not because it’s being replaced by something better.
—Ari Paul ⛓️ (@AriDavidPaul) June 14, 2022
Despite sounding bearish, Paul clarified that he is now “more bullish” on crypto than he was almost a year ago. He just wants to warn people to be careful what he buys during the current market downturn.
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The effects of the bear market have had a massive effect on the livelihood of various workers in the crypto industry. Cryptocurrency exchange Coinbase recently announced that it will lay off 18% of its employees due to declining revenue and a bear market.
Meanwhile, some members of the community have provided information and plans for traders on what to do to survive the crypto winter. From determining their risk tolerance and average dollar cost to finding new projects with potential, members of the community try to encourage others to keep going despite the cold crypto winter.