Easy Money Facilitates Bitcoin and Crypto Markets

This is an op-ed 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 Capital of the three arrows is in serious financial difficulties. Nobody knows Who is then, but one thing is certain: more pain is coming. Current market conditions reveal capital and technology problems in the cryptocurrency world. Things are not going well in the Web3 hood.

What about bitcoins? To be clear, bitcoin is not 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. At the time of writing, there are 19,939 cryptocurrency projects, most of which have appeared in the past 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? Did the Federal Reserve cause this? The answer is simply no. As I said, the market didn’t cause any problems in web3 and crypto projects, the market just revealed the rot below. The problem is a liquidity problem and not necessarily a technical one. We saw a “gold rush” during the last market run from fall 2020 to spring 2022. This euphoric market rush meant more competition. Higher competition created an environment where two things emerged:

To advertise

Leave a Comment