Charles Hoskinson urges cryptocurrency investors to “zoom out” in the face of market volatility
The Cardano creator views the current period of fear and panic as a catalyst for development.
During his most recent AMA, Input-Output CEO Charles Hoskinson discussed the crypto market collapse. Despite the anxiety and terror created by the possibility of war and the increasingly authoritarian posture of some governments, he presented the situation as a necessary lesson to be learned in order to accelerate the worldwide adoption of digital assets.
“What this means is that cryptocurrencies will be adopted globally, not just by a few tens of millions of people, but by billions…”
As such, he believes that the present global scenario, although worrying, is only a prelude to a more equal future.
Over the previous seven days, crypto market capital outflows totalled $225 billion, a loss of 11% in value. Tuesday’s early hours marked a bottom as bulls recovered their confidence. Since then, inflows totalled $119 billion, bringing the market worth to $1.763 trillion, a 20% year-to-date decline.
However, given the larger political backdrop, particularly the continuing Russian-Ukrainian issue, which witnessed an escalation on both sides this week, culminating in the White House placing sanctions on Russia, some observers do not see the situation improving in the near future.
When combined with the on-chain data for Bitcoin, which imply declining demand and interest, the situation becomes even bleaker.
Technical expert Francis Hunt dubbed the Crypto Sniper, cautioned that the recent relief rally is not conclusive proof of a bottom. As a result, he advises investors to maintain a defensive posture.
The broader context
Hoskinson commented on the matter, stating that he finds it odd that crypto markets seem to be moving in lockstep with equities. Crypto-assets, he believes, should act in a countercyclical fashion to the macroeconomic climate.
“It makes no sense at all because if we’re going to war and fear inflation, chaos, and tragedy, you’d think the reverse would be true. That, as long as there is volatility in this area, crypto-assets provide a safe haven.”
With that in mind, Hoskinson stressed the need of avoiding daily market volatility. Rather than that, he reminded us that only ventures with genuine value and purpose would succeed. Additionally, “things are going to look better in the long run.”
“That is why you must zoom out and ask yourself why we are here and what we are doing. And recognise that if there is genuine value, usefulness, and purpose in five, 10, or fifteen years, things will seem better.”
In this line, Hoskinson said that the current state of affairs only reinforces the necessity for cryptocurrencies. Individuals are protected from asset confiscation and tyranny via digital assets.