Alex Tapscott shared with Cointelegraph that bear market conditions can lead to new ideas and businesses being created.
Investors often fear bear markets because they use tools to measure market sentiments. Some prefer to look at the potential benefits that crypto winter can offer, despite all the uncertainty.
Ninepoint Digital Asset Group’s managing director Alex Tapscott told Cointelegraph that the bearish market is an opportunity to build. Tapscott stressed that it is important to see beyond market prices and look at the foundations being built. Tapscott explained this:
“Crypto Winters are the best time to dig down on these core concepts and do the work. They also allow you to build for the future. We saw the NFT revolution, decentralized financing, stablecoins, and play-to earn gaming in the last bear market.
The executive stated that the current bear market will help Web3 realize its full potential. Tapscott stated that Decentralized Finance (DeFi) could grow and continue to be the financial system for the new internet. He stated that:
DeFi was the catalyst for the financial service revolution. Bitcoin was the spark. Many firms will be caught in the flames if they fail to adapt, innovate and embrace this new industry.
Tapscott also stated that people should be looking for developments in decentralized autonomous organisations (DAO). Tapscott stated that DAOs would complement corporations in organizing resources.
Tapscott stated that crypto-assets had lost approximately $2 trillion during the current bear market. This prompted mainstream media outlets ( Bitcoin ) to write obituaries about Bitcoin. The crypto veteran advised investors to keep their cool and look for opportunities. Bear markets are often a great place to form new ideas and build new businesses. He stated that:
“Those who are able to keep calm and go on are the most successful in crypto.” Although I do not know the exact date, I feel confident that it will be over like other bear markets.
According to Tapscott, the downtrend in crypto prices is very distressing for investors if they look at it over a short-term period. Tapscott said however that investors appear to have cooled down, so the pain could end.
