Crypto winter induced, crypto summer expected.

Jun 23, 2022
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           Do you remember those cold and freezing days of last winter when you were looking forward to summer? Well, it's summer now and the heat is doing its thing, but we can enjoy beautiful sunny days and light clothing. At the end of summer you are probably already thinking about when is it coming back and what you did not do and wish to do in the next one, but remember that on the way you will meet again with a cold and icy winter that reminds us how changeable are the seasons, and with it, all that it brings us from one moment to another.

Well, I will bring you this comparison to the current situation that the crypto world is living in and how we went a few months ago from a "crypto summer" to a "crypto winter". Because the situation is cold, very cold right now for the whole crypto world. The drops are already more than 60% of the historical maximum of a few months ago. BTC is close to $20,000 (which leaves miners in a dilemma of whether to continue mining or not, since the energy investment price is compared to the value of today's price, which makes it unprofitable); ETH is barely above $1,000 (far from the $4,000 of a few months ago). Investment houses withdrew their investments from crypto markets and exchanges like Binance stopping for a few hours the withdrawal of BTC from its platform. Now then, our study and mental capacity should lead us to see a little further and not only think about the consequences but also the causes to understand where we could be in the coming months.

Now, let's understand something, bad global governmental practices, exacerbated populism, uncontrolled fiscal spending, and conflicts between countries make this a salad of problems that brought us here. Because just as the crypto world had its "summers" governments also took advantage of it and did not care at the time. Now that inflation rates are high, and that there is an economic recession and low production, it is easier for them to blame part of the responsibility on investors who deposited their money in crypto assets not backed and guarded by them, so they increase interest rates to generate an economic crisis, economic recession to accumulate greater market liquidity with reverse effect where liquid money is withdrawn from the hands of people and investors and return to central banks where they can manage and dispose of it. Something like this, as we cannot lose control in that the population chooses where to have their money, we are the ones who will have it and decide where to deposit it. It is a plan to control the global economy to first generate generalized panic and then say, this is what we must do so that you do not suffer anymore. With one hand they give us the pacifier and with the other, they do not take it away.

While it is true that we are in a generalized and global crisis for multiple reasons already mentioned, we must not lose focus and sight of our decisions and what we believe in; technology is suffering not because it is futuristic and avant-garde, it is suffering because of interests that do not want it to follow a different path from the one we have been taught so far. We must be and act with a cool and logical mindset, looking to the future and again waiting for that crypto summer where the sun will rebound in the value of our assets and shine again as it did a few months ago.

Remember also that everything is a cycle, this will allow us to have more peace of mind and believe in new markets and strategies to secure our investments. We are in winter, but with an eye on next summer.

Irving Arrieta