Challenges and Opportunities in the Encryption Industry: From Low Points to New Peaks

Recently, social media has been filled with criticisms and mockery of the current state of the encryption industry, including some individuals who have achieved success in this field. However, as a practitioner in the industry, I believe it is unnecessary to stand on a moral high ground and point fingers because of the current downturn. After all, it is the existence and development of this industry that has contributed to their achievements today.

Currently, the encryption industry is indeed facing a downturn similar to those in 2018 or 2022. This is not just a price issue, but also a shake in people's confidence in the industry. The past two years were seen as years of hope, but now most people scoff at this hope. The main reason is that the long-awaited "altcoin season" has not arrived as expected, coupled with the fact that the industry seems to have failed to produce new compelling narratives in the past two years.

However, the challenges facing the industry may not only come from internal factors, but also from external ones. In recent years, the rapid development of artificial intelligence has captured most of the investors' attention, including in the encryption industry. Many practitioners, especially developers, have turned to the AI field. This has become the last straw that broke the industry's confidence.

Facing the disappearance of the imitation season, the lack of new narratives, and the fierce competition from AI, the encryption industry seems to be in a predicament. But as the saying goes, without a trough, how can there be a climax? So, where are the opportunities in this industry now and in the future?

First of all, regarding the Shanzhai season, while we cannot predict whether another crazy market like in 2017 or 2021 will occur, there have still been many wealth creation myths over the past two years. It's just that it's no longer in full bloom, but concentrated in certain specific sectors. This trend is likely to continue, and we need to adjust our mindset and expectations.

Secondly, regarding the new narrative, the stablecoin that has recently attracted much attention is a great example. Whether in the West or the East, stablecoins have become a hot topic. The success of stablecoins could greatly expand the user base of the encryption circle and bring new market opportunities. This may take 1-2 years to settle and develop.

Finally, regarding AI, blockchain is likely to become a native tool for AI, addressing the issues of information transfer between machines and genuine interaction between machines and humans. As AI agents develop, ensuring secure and reliable communication between machines that can be verified by humans may play a crucial role for blockchain technology.

In the face of these changes and opportunities, we should maintain an open and accepting attitude, rather than resisting or cursing. Rationality will ultimately triumph over emotions, and the encryption industry will not remain in a downturn forever. Let us once again rise against the wind and explore new possibilities in this industry together.