A bull market can be intoxicatingly fun for fairly obvious reasons. Everyone is up, optimism is high, euphoria is rampant, and some dreams come true. Entrepreneurs, speculators, and investors all feel like geniuses. All market charts and personal balances look amazing but like any phase of euphoria, it must come to end. Underneath any sizable bull market will be problems, excesses, bad ideas, and outright frauds that will be covered up by favorable price action. Bear markets work to cleanse and uncover what the bull market kept alive and masked.
If a bull market is a large and delicious feast, a bear market is a necessary fast.
Return of Focus
Negative shocks or stressors experienced during bear markets reorient collective attention toward revealed weaknesses and fundamentals across the ecosystem. Building out critical infrastructure, improving performance, adding new products and services can be done without the short term attention demanded by rapid increases in demand. Long term thinking, hard work, and planning has more room to reign supreme in a lean bear market. As a result, the ecosystem will be prepared for an even bigger wave of demand after a nice long and healthy hibernation.
After budgets and resources become scarce, individuals and groups increase their diligence over the capital still left. This helps improve individual and group fitness across the ecosystem. Too much of a resource can breed laziness and frivolousness but a bear market imposes more discipline among participants in the market. Companies, projects, and individuals become more and more efficient. They’ll be ready to handle more capital in a more mature and efficient way in the future.
During a bull market oversupply is bound to build up. Too many companies, too many projects, too many ideas, too many products and too many services proliferate in the market without sustainable demand for the excess. Bear markets work to purge the supply of weak entities that often act as dead weights, distractions, or outright frauds in the market. A bear market helps consumers, outside observers, and investors separate the wheat from the chaff.
The expunging of excess makes room for new entrants to come in with fresh eyes, ideas, and energy. While there is blood in the streets, opportunistic observers can become participants in the market at lower costs and are equipped with the lessons of those who perished before them. The room made for new entrants can be a vitalizing force in a brutal downturn.
Our company was born in a bear market in early 2014. Since then we’ve been building everyday, helping users all over the world secure digital assets and interact with the networks of the future in an easy, secure, and private way. A bear market has returned to the ecosystem and we expect the benefits listed above to return in a big way. Although it can be painful for some time the fast imposed by the bear market will bring about a healthier and more mature market ready for the next wave of global demand.
When we started, the global cryptocurrency market was valued in the single digit billions(USD). The market has recently crashed from a high of around 700 billion(USD) to current valuations of around 100 billion(USD). We expect the market to blow past 700 billion into the trillions in the next wave of global demand. Edge will be there to help onboard users all around the world with better products, services, and a better company forged in a bear market.
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