One thing that is quite characteristic with crypto is emotional attachment. Most people are so emotionally invested that any criticism to their favorite projects is met with hostility. Charles Hoskinson, one of the people behind Cardano, recently came face-to-face with this hostility after he made some remarks on Holochain (HOT). Take a look at what Charles had to say about this hostility on reddit.
From his reaction, it is clear that Charles Hoskinson was looking for an open and intellectual conversation about the potential use cases of Holochain (HOT), but the community would hear none of it. However, Charles’s case is neither unique nor is it isolated. Crypto has got to a point where people only want to hear great things about their pet projects, even though there could be legitimate concerns about them. Any intellectual debate about a project is quickly interpreted as FUD by people who are against the said project.
The genesis of it all
The negativity that people have for any kind of criticism stems from the fact that, most of them got into crypto at the peak of the market in 2017. As such, a good percentage of investors are deep in the red. This makes them feel like, any kind of criticism could seek them deeper into losses, even though it might be well intended.
Then there is the fact that most people have an unrealistic expectation of what blockchain can do, or how high specific projects can go. The December high raised the expectations of most investors, and many still believe that such a massive price hike is still possible. This explains why Vitalik Buterin recently faced heavy backlash when he said that 1000X gains in crypto are no longer tenable. After much backlash, he clarified that such gains would translate to a $270 trillion market, or 70% of the world’s wealth, which is not very practical. But even with this clarification, people still went at him, an indicator that most people are caught up in a desperate need for supernormal gains, and are detached from the reality of the market.
The need for a more moderate approach
While crypto will grow and thrive, it is imperative that investors to moderate their expectations. It is only through a more rational approach to the whole thing that this market will gain depth. It will gain depth in the sense that people can start to focus more on the fundamental value of different projects, and not just the price.
A project like Cardano (ADA) holds lots of promise to revolutionize key industries like finance, healthcare and even how governments manage their affairs. That’s a big deal but it will not happen overnight. It will take time for the project to actualize what it working on. For an investor to benefit from these gains, they have to get rid of the ‘get rich quick’ mindset and conceptualize the bigger picture. It’s only through such a long-term view that one can accumulate a sizeable amount of good coins over time.