Easy money facilitates bitcoin and crypto markets

This is an opinion piece by Adam Taha, host of an Arabic Bitcoin podcast and contributor to Bitcoin Magazine.

Luna’s infamous collapse was followed by an implosion at Celsius, then suddenly Tron showed signs of disappearing and now The capital of the three arrows is in serious financial difficulties. No one knows Who is so, but one thing is for sure: there will be more pain. Current market conditions reveal capital and technology problems in the cryptocurrency world. The Web3 cap does not work well.

What about bitcoins? For the sake of clarity, bitcoin is not a crypto. It is important to distinguish between the two. When I say “crypto”, I am referring to digital products and innovations that rely on the use of blockchain technologies to run their projects. As of this writing, there are 19,939 cryptocurrency projects, most of which have emerged within the last 12 months. Why are many of these companies struggling today? How do they fail at a relatively similar time? Are all these projects and companies scams? Has the Federal Reserve caused this? The answer is simply no. As I said, the market gave no problems in web3 and crypto projects, the market simply revealed rotten below. The problem is a liquidity problem and not necessarily a technical problem. We saw a “gold rush” during the last market run from autumn 2020 to spring 2022. This euphoric market rush meant increased competition. Higher competition created an environment where two things emerged:

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