Crypto Winter: This too shall pass
An analysis by Adv PM Mishra, Finjuris Counsel FZ-LLC UAE, Finlaw Consultancy India
"The fall of FTX and the crypto industry in general has stirred tension across the sector. Many businesses have stopped their operations. But now is the time you take advantage of the market situation," says Adv P M Mishra of Finjuris Counsel UAE.
As the year 2022 ends, crypto traders all around the world are living out their worst dreams, with FTX breakdowns and a drop in the crypto market. With the cryptocurrency market continuing to undergo changes and depressions, it may be appealing to put your ideas on hold and wait for the market to normalise. However, this is the ideal time to double down on your initiative and keep developing. Here are some of the reasons:
Markets are inherently volatile and driven by human emotions. It's crucial to remember that the cryptocurrency market has always been volatile owing to its immaturity and modest market size in comparison to the industry it's disrupting. The whole crypto market cap is nearly $800 billion (for a 24x7 tradeable asset), compared to Amazon's $860 billion market worth (approximately a third of trading hours in comparison). Small markets disturbing broad business prospects are the result of a long-term trend, and short-term volatility must be included into your business based on your exposure. As a result, rather than being persuaded by short-term market fluctuations, focus on the long-term potential of your idea and keep growing.
Constructing makes a significant contribution. Even if the market may be performing better, you can keep adding value to your blockchain project by building and improving on it. This can assist position your initiative for long-term success, regardless of market conditions. Remember that the finest businesses are formed during bear markets because they are prepared for the worst and plan for the long-term trend rather than the short-term market volatility.
Possibilities may present themselves. As you continue to construct, you may come across fresh opportunities that you had not previously explored. These may include collaborations, financial possibilities, or even new markets for your project. Despite the volatility and recent price drop, many experts believe bitcoin is on its way to exceeding the $100,000 barrier, albeit they differ on when that will happen. In addition, according to a recent Deutsche Bank research, over a quarter of bitcoin investors predict the price of bitcoin would be more than $110,000 in five years. By being focused on creating, you boost your chances of discovering and capitalising on these possibilities. Remember to stay focused on your goal and the long-term requirements.
It's an opportunity to set oneself apart. Many initiatives may be inclined to scale back development or shift their emphasis amid difficult market conditions. You may distinguish yourself and demonstrate your dedication to your project by continuing to develop and innovate.
Finally, it is critical to remain focused on your long-term objectives and to continue developing despite market problems. By doing so, you improve your project's chances of success and position it for future expansion. It's time to work hard and not give up. We at Finjuris Counsel strive to ensure that projects in the crypto ecosystem follow the law of the land and have a futuristic vision to grow in such a volatile and ambiguous industry.
For more information visit: www.finjuris.ae