Many people who read the title may think the "bad side" refers to the bear market, but although that is usually quite hard to swallow by newcomers, it's not its bad side, in my opinion.
Source - There is a dark side of the moon (the same one always)...
The 4-year crypto cycle has the side effect of increasing the focus on short term instead of long term. When we think about the average lifespan of a person, 4 years is short term.
Yes, we can have multi-cycle approaches, but how many times do we make decisions based on THIS cycle alone?
What's wrong with this type of thinking: "In the 2014-2017 we had ICOs, in 2018-2022 we had NFTs, what's hot now? AIs!"?
What's wrong is that ICOs is almost a taboo subject because most of them were scams and now the SEC is sniffing around and they gave them reasons to do it. NFTs could've been something big. But their name was tarnished by the plethora of meme-like NFTs with no utility and sold at incredible prices. Not that the ones with utility delivered very well. What now? Let's all hype into the AI tokens because they are the future... until the next cycle.
Is AI a major industry right now and likely to continue to grow exponentially? Yes. So why wouldn't AI tokens become a great multi-cycle investment? As we know, AI is CPU and memory intensive, and the more advanced they get the more computing power and memory they need. The ones that have or can afford this kind of computing power are major corporations. Wouldn't a distributed model work, where the AI uses the computing power from many regular people who would rent their CPUs (and memory) to such a service, for example on a public blockchain? I don't know. It's one thing to have a supercomputer model, another to deal with a decentralized/distributed system and consider the internet connections lag, for example. Speed is important for these AI models.
I had a brief look at what is considered top AI projects in the blockchain space. They are no competition for what is offered by major corporations, but if what is promised is delivered, they may have a positive impact in the crypto space. But didn't we think the same way about NFTs the cycle before? And yet many have forgotten about them already...
True success rarely comes by thinking in 4-year cycles.
Can profits be made using this short-term approach? Sure! Does it help the development, maturing and growth of the crypto space? Not at all, quite the opposite!
Think about all the projects with a long term perspective and those involved in building them. How do they feel seeing all this sh*t around them and lack of interest in what they are building? And yet, they are building the crypto space, not the one-cycle projects, many of them scams or never materializing into anything concrete...
Want to check out my collection of posts?
It's a good way to pick what interests you.
