Before, in '17, there was no lack of places to make "easy money", the hype around crypto was massive. Most of the coins had been created within the prior 12 months and were all very very cheap. As interest in bitcoin and blockchain arose, the market caps of both BTC and alts rose with it.
This time around will be less easy. Cryptocurrencies cannot just pop up left and right promising to be the "next bitcoin" and get millions in funding for making a white paper. The learning curve has been flattened, and many users already in the crypto space understand how to discern between a shitcoin and a viable product. With that said, there will be an influx of new "dumb" capital which does not have the expertise of those who have been here for some time, but still the barrier to gaining quality education on making investment decisions has been greatly lowered.
Many newcomers become fearful of entering in the market due to this lack of knowlege. They assume since bitcoin has such a high price, they can never afford to become a player in this system. The key turning point for this capital to enter the market will come with rising education, but also Penny Coins.
As the price of bitcoin rises, the interest in crypto applications as a whole will also rise. Many of the coins which have come around in the last 3 years have now begun to mature, and have working products to show for their efforts.
As I have been talking about here since the start, because it is my main perrogative to spread this message, cryptocurrency is the future. This current global economic breakdown will give rise to all new business models base around blockchain ecosystems and use cryptocurrencies to facilitate instant, cheap transactions. Gone are the days of the brick and mortar banks controlling the currency supply, here to stay are the ones involving open sourced, dynamic , distributed systems.
These systems will involve the use of native tokens and coins to secure the network through cryptoeconomic incentives. They will also be built on various blockchains, think Coke vs Pepsi, there are two options and users can side with one loyally or use both interchangably, but they continue to coexist. This is how the world should view crypto.
There are thousands of cryptocurrencies. Many of them are Bitcoin replicas which have the exact same code base, and differ only in name and market cap. These coins will slowly dissipate over time as the market realizes they are more harmful than good. They waste capital and provide unneccesary redundancy in what they achieve.
Coins all have specific uses, and the underlying platforms are what derive their usability. Coins which excel in fast, cheap payments, will be integrated into businesses with large throughput of transactions. Those which help to tokenize assets will be implemented in the growing Internet of Things (IoT) economy. Coins which retain and or gain value over time due to deflationary emmission schemes, which currently there is only one in the form of Bitcoin, will provide a crypto "safe haven" for investors in this new economy, much like the dollar has acted for the past 49 years or so.
There is no need to choose only one for the future of the global economic system. Some businesses will choose Ethereum, some Eos, some HBTC chain, and so on. There will be brand new models of economics based on these systems and their emergent properties. In fact there already is, its called cryptoeconmics, and is based around the game theory created by the incentive mechanisms employed in consensus algorithims in the networks.
Friedrich A. Hayek was a renowned economist during the turn of the 20th century. He was a free market economist and set in stone much of the Austrian economic school of thought in the field of economics. He noticed markets have always had these emergent properties.
A matryoshka doll is a russian toy, in which wooden dolls can be popped open to reveal an even smaller doll, this can be done over and over again until the smallest doll is released.
Hayek called his theory about emergent properties in markets the Matryoshka Theory because like those dolls there are always more layers to be discovered. Unlike those dolls however is the fact the the emerging properties of the crypto space are unlimited, there is no smallest doll to find at the end.
He was speaking on this with context to the centrally planned economy being created in the US under the Federal Reserve Act of 1913. He realized that to attempt to forsee all possible properties of a market by a central planner was not only foolish but inefficient. He wagered that the markets ability to transform itself over time was a benefit being stifled by the central bank system.
Crypto is the breautiful realization of this, with fully open markets and true decentralization, crypto has proven Hayek's theory. Without a central planner, the crypto space has efficiently dedicated capital to resources valued by the market, leading to a plethora of coins and applications, serving a global user base without anyone's permission besides the market's in the form of capital allocation.
Without central planning, crypto has blossomed into various sectors, serving different use cases all across the globe with unique implementations. As time continues, more and more problems will arise, and with it more and more solutions. This characteristic of free markets to create the most efficient solutions predates Hayek by quite some time, and was coined by the father of free markets, Adam Smith, when he wrote about the "invisible hand".
The market acting as this invisible hand in the form of allocating investment capital into these coins has been proof of the efficiency of open economic systems. As more and more use cases pop up which have crypto solutions, more and more cryptocurrencies will arise. Each with its own usability in its own unique way, creating a great number of cryptocurrency matryoshkas.