How to Overcome Difficulties in the Cryptocurrency Cycle?
In the first two months of 2021, the prices of various cryptocurrencies have doubled and continue to hit record highs. The market value of BTC has exceeded $1 trillion. It is common for a pixel encrypted artwork to sell for millions of dollars, and all this shows that the cryptocurrency is in a bull market.
Although it is impossible to predict the future, we can make full preparations based on the previous cycle. By analyzing historical cycles, we can predict the trend after the recent bull market. The historical cycle shows that cryptocurrency has great opportunities, but it also has great uncertainty and volatility. Encryption technology can not only change the currency but also bring huge changes to the financial system and the Internet.
Cryptocurrency historical cycle analysis
It is worth noting that the future cycle is different from the past, and we may not even be able to participate in the next cycle! However, the market is cyclical, and key market elements will appear repeatedly. To prepare for the next cycle, you need to understand the following elements that appeared in the past cycle:
The price of cryptocurrency is greatly affected by market sentiment. Founders, employees, and users will quickly gain or lose large sums of money, and it is difficult for them to deal with this huge volatility completely rationally. To make matters worse, historically, bull markets have been short, while prices have remained normal or have fallen for much longer periods.
Cryptocurrency has attracted a lot of public attention. Many people discovered and understood cryptocurrency and wanted to invest in cryptocurrency. The development potential of some companies or agreements was over-touted, so news of their failure soon appeared.
The cryptocurrency ecosystem is constantly growing. At the end of each cycle of cryptocurrencies, they will grow stronger. All key indicators prove this, such as entrepreneurship and developer activity, academic research, infrastructure maturity, corporate recognition, public awareness, and prices. If you analyze carefully, although each cycle generally fluctuates greatly, the acceptance of cryptocurrencies has been rising.
Weak companies will be eliminated. In a bull market, everyone can profit, while a bear market will expose very poor fundamentals and strategic flaws. Many companies cannot survive the bear market. After other companies fail, those companies that have huge advantages will build, and they will usually make big developments when the next bull market arrives.
The function of the infrastructure will reach its limit. Major companies, encrypted native applications, and the blockchain itself have all encountered extreme situations. The exchange experienced downtime. Transaction costs increased by 10-100 times.
Build cycle resilience
It is very difficult to predict the specific trend of any cycle. Therefore, it is wise to build cycle resilience. Whether in a bull market or a bear market, the most important thing is to consider your situation, but sometimes it helps to learn from the experience of others.
I will introduce you to several effective ways to build resilience:
Take the lead. People tend to focus on what happens in the short-term cycle, but focusing on the original goals can give your team and community inexhaustible motivation.
Focus on the main goal. During the bull market, everything can be developed, so it is easy for people to want to do anything. Before you increase or change goals, set a premise. The same principle applies to bull markets. In the history of cryptocurrency, many companies have failed because they have deviated from their main goals. Therefore, when the next bull market comes, they can only painfully watch many companies achieve their goals.
Do a stress test. Suppose the product usage increases by 10-100 times, will it crash? Every team leader should face this problem.
Repeatedly emphasize information in different channels. In an age full of various contents and easily affected emotions, it is difficult for people to hear your message.
Prepare for long-term development instead of focusing on short-term conditions. Many entrepreneurs have failed, but you must maintain a good attitude and give yourself some time to sort out your clues. The more you experience, the easier it is to deal with difficulties, and you must continue to learn from difficulties.
Look to the future. While the breakthrough of basic technology has brought huge opportunities, there are also huge uncertainties. These are the two key factors of the cycle. It is not surprising that cryptocurrency redefines multiple global markets such as currency, financial services, and the Internet, and it will become a more prominent example.
Cycles have both good and bad sides, and their nature is neutral. The cryptocurrency bull market makes people look forward to the future and brings unlimited opportunities. When the currency price drops sharply, people will know more about its usefulness. Regardless of its development, you have to discover the essence through the phenomenon.
Every time it goes through a cycle, cryptocurrency will develop. When the situation is good, you should build resilience. Regardless of the future, you must be prepared for success. I hope you can seize this opportunity.