The host of Bloomberg Odd Lots, Joe Weisenthal, has predicted that this bear market could be the coldest winter in the history of the digital currency market. He listed 12 damning reasons why this crypto cycle will be especially harsh this time around and why it is unlikely to have any meaningful respite for months to come.
Weisenthal tweeted:
The TV host listed the following 12 reasons for the coldest crypto winter ever:
He gave 10 reasons why the crypto winter would be even worse this time around back in February, and he has now added 2 more in this latest post. According to Weisenthal, the most pressing concern is that all major arguments in favor of the crypto market have run their course, and nothing seems to be working for the sector right now.
He stated that when crypto users were asked about real-world use cases, they would argue that a lack of regulatory approval is the reason why there are fewer actual uses of digital assets. However, regulatory approvals, including the approval of crypto Exchange Traded Funds (ETFs), have already occurred, yet the market has failed to match other sectors like precious metals and the stock market. Only the CLARITY Act remains to be passed in the United States, and even that is likely to pass in the near future after advancing from the Senate committee.
 
Emerging/Current Threats
Compounding the problem, Weisenthal argues, include technological challenges like the emergence of the Quantum Computing (QC) threat. QC looms over Bitcoin’s cryptographic foundations, raising questions about the network’s future security. While plans to quantum-proof crypto networks are already under deliberation, there is no perfect solution to this threat, and some fundamentals may have to be compromised to shield crypto networks against QT.
In addition to this major disruption in computing, the emergence of Artificial Intelligence (AI) and its resource-intensive infrastructure has diverted significant capital and attention away from Bitcoin mining.
The Future
While Weisenthal’s comments may be considered crypto-skeptical and typical of a bear market, the challenges of the future cannot be denied. The crypto community may have to migrate to a quantum-proof network just after the next BTC halving, and there is currently no consensus on the matter.
Crypto adoption has also hit multiple snags despite an improving regulatory landscape. The industry has survived major downfalls over the years, but whether it can do so again in an environment of exhausted hype, competing technologies, and changing investor behaviors, it remains to be seen.
Be the first to comment