During his most recent AMA, Input Output CEO Charles Hoskinson spoke out about the current crypto market downturn.
Despite panicking and fear caused by threats of war and the increasing authoritarian stances of certain regimes, he interpreted the situation as a necessity or lesson to be learned to promote the adoption of global digital assets.
“That means that there is global adoption of cryptocurrency beyond just a few million people, but billions …”.
According to his opinion, the current geopolitical environment, however alarming it may be, is just a step toward a more egalitarian world.
The rally brings relief to crypto markets battered
In the last seven days, crypto market capital outflows have totaled $225 Billion. This represents a 11% decrease in value.
The bulls found some composure in the early hours of Tuesday. Inflows have reached $119 billion since then, bringing the market cap to $1.763 Trillion, down 20% year-over-year.
However, analysts don’t see the situation changing given the political landscape and the ongoing Russian Ukraine crisis. This week saw an escalation by both sides, with the White House imposing sanctions on Russia.
The situation becomes even worse when combined with Bitcoin On-chain Metrics, which indicate a decrease in demand and interest,
Francis Hunt is a technical analyst and also known as the Crypto Sniper. He warned that the relief rally currently being experienced is not a definitive sign of a bottom. He advised investors to remain cautious.
The larger picture
Hoskinson gave his view on the situation. He said that he is curious about crypto markets appearing to be in sync with stocks. According to him, crypto-assets should be countercyclical to the macro-environment.
It makes no sense because, if we go to war and are worried about inflation and chaos and disaster, you would expect the opposite. Because instability is a constant here, crypto-assets can be a safe haven.
Hoskinson stated that it is important not to get caught in the market fluctuations of the day. He reminded us instead that only projects that have real utility and purpose can make it. In the long-term, things will look better.
“That’s why it is important to zoom out and ask yourself why we are here and what we are doing. Realize that if you can find real utility and purpose within five, ten, or fifteen years, then things will get better.”
Hoskinson stated that what we see today only reinforces the need to use cryptocurrencies. People have some protection against asset theft and authoritarianism through digital assets.
This will lead to greater adoption of crypto worldwide.
