For crypto investors who have experienced their first match Cryptographic panic in recent weeks — Not only witnessing the decline of big Bitcoins Stablecoin crash Collapse with LunaTerra and Terraform Labs founder DoKwon — According to Peter Smith, CEO of Blockchain.com, get used to it.
More pain is coming, Smith says, more risk will be exposed, but in the end it’s good for a decentralized economy.
For crypto investors, the lessons of the past few weeks need to return to crypto, which is the equivalent of the traditional market investment concept of the dollar cost averaging method-slowly building asset positions over time. In a single match of volatility, keep all money private.
Smith said he would “work slowly on average” on CNBC’s “Worldwide Exchange.”
Bitcoin Earlier this week, it reached its lowest level since December 2020, below $ 26,000, and shares in a listed cryptocurrency broker. Coinbase So far this week, it has decreased by 74% year-on-year.
“And you need to be prepared to hold it for quite some time,” Smith added. “We are still in the early stages of building this entire financial system.”
Founded in 2011, Blockchain.com, one of the most established players in the field, 7th place This year’s CNBC Disruptor 50 list.
Investors haven’t been patient these days, and the institutions that have piled up on cryptocurrencies have made a lot of profits, made significant profits, and many new individual investors have left their bags with them. This is a typical result of a market bubble.
“What’s happening in the market is the flushing of risk and leverage across the global market system, and I’ve felt very keen on cryptocurrencies, especially in the last few weeks,” Smith said. “I’ve long said that this will be a long process of recruitment and growth.”
This process involves more destruction in the short term as it wipes out weak links in the crypto economy.
“What you need to see is the integration of the market itself and the companies that serve the market,” Smith said.
he Recently tweeted “There are many companies, protocols and assets that require a creative destruction process to get through the market,” he told CNBC about “creative destruction” that will strengthen the crypto industry in the long run.
“We expect some risks to begin to be exposed through the economy within a few weeks after the market has fallen so dramatically,” Smith said.
This includes companies, trading companies and funds that do not properly manage risk.
“It will take weeks, if not months, to see a really brutal spillover for cryptocurrencies,” he added.
Smith remains a cryptocurrency, and as someone who has witnessed CNBC the “fourth or fifth” market cycle in the volatile fintech sector, “every time it was a cruel pain along the way. , Leading to a stronger and more useful industry, “and true fundamental growth over the next few years. “
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