Challenges and Opportunities in the encryption Industry

Recently, social media has been filled with criticism and mockery of the current state of the encryption industry, including from some individuals who have achieved success in this field. As a practitioner, I believe it is unnecessary to take a moral high ground and blame others just because the industry is in a downturn. After all, it is the existence and development of this industry that has allowed them to achieve their success today.

Currently, the encryption industry is indeed facing a downturn similar to that of 2018 or 2022. This is not only due to price issues but also because people's confidence in the industry has wavered. The past two years were seen as years of hope, but now most people are skeptical about this hope. The main reason is that the long-anticipated "altcoin season" has not arrived as expected, and the industry also seems to have failed to establish a new strong narrative over the past two years.

The more complicated issue is that the rapid development of artificial intelligence has captured most of the investors' attention, including the encryption industry. It is understood that over the past year, many practitioners, especially developers, have shifted to the AI field. This undoubtedly puts greater pressure on the encryption industry.

In the face of the disappearance of the imitation season, doubts about the lack of new narratives, and the strong rise of AI, the encryption industry seems to be in a dilemma. However, we should remember that there are no peaks without valleys. So, where are the opportunities for this industry now and in the future?

First of all, regarding the clone season, while we cannot predict whether there will be another crazy market like in 2017 or 2021, there have still been many investment opportunities in the past two years. It is just that they are no longer blooming everywhere but are 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 recently highly discussed stablecoin is a great example. Whether in the West or the East, stablecoins have become a hot topic. The success of stablecoins could bring significant changes to the entire industry, much like the launch of Alipay did back in the day. It has the potential to greatly expand the user base of the encryption circle, truly opening up the market and bringing about the industry's "iPhone moment." However, this process may still take 1-2 years.

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

In the face of these changes, we should maintain an open attitude, adapting to the trends rather than resisting them. Reason will ultimately triumph over emotion, and the encryption industry will not remain in a downturn forever. Let us hold on to hope and welcome the arrival of the next wave of opportunities.