Game Theory Group

The Blockchain Brief

The World Is Not On Fire

Nothing takes the steam out of a morning like waking up to Blockfolio painted in red. Those who entered the market in 2015 or 2016 are no strangers to large mega-dips in the cryptocurrency market. Those who entered in 2017 have mostly seen green for their entire crypto careers. But all of us have come to expect that investing in cryptocurrency -- at any stage -- is investing in the next evolution of the internet, and so we expect results.

I am not immune to bouts of panic or self-doubt when it comes to the cryptocurrency market. I don't know if Bitcoin will survive, or if Ethereum will take over, or if Roger Ver will descend upon me in the dark for calling BCash, "BCash". 

What I do know is that there are a number of respected crypto investors and thinkers that publicly laud this bear market, with the thought process that infrastructure needs to be built quietly, before the market can sustain an enormous growth frenzy.

I had a back and forth with author and investor Chris Burniske on Twitter this morning, that put some things into perspective:

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I say all the time, and again during a recent podcast I did with my friends at "The Mentors", that we are still in the infrastructure building phase of the blockchain ecosystem. We simply cannot scale many of the largest protocols and platforms to survive an attack of the Cryptokitties. How can we power true enterprise level applications?

As you think about your portfolio in the coming weeks -- bear or bull -- bucket your investments into infrastructure, enterprise and consumer facing. Which will survive a prolonged bear market? Have you taken the time to learn about the underlying technology and why it's important for the long-term?

If you have, and you are, realize that a one month bear market is a blink of an eye when it comes to large-scale wealth creation in the new paradigm.