I started investing in cryptocurrencies in Dec 2017, right when Bitcoin hit an all-time high of $20k. Back then, the talk around cryptocurrencies was mostly about payments. There was Bitcoin, which still hadn't established itself as a store of value - mostly because institutional money hadn't validated it as one (of course, early investors would have always called it one). Most traditional investors were arguing that it was a failed technology because it could not process a large number of transactions like Visa. The talk around other projects was also about beating Bitcoin by processing a higher number of transactions per second - XRP, XMR, LTC, BCH, and many more. I am not even listing scams such as Bitcoin Diamond, or Gold, Silver & Platinum.
Ethereum was making a lot of noise as this distributed world computer and it had competition from a number of copycat projects that were popping up based on where the founder was residing - NEO, Tron, ETC, IOTA, EOS - the list is long. Projects on Ethereum sounded more like a dream than anything else. "Smart Contracts" was the buzzword and people were ready to clean all the mess in the world using smart contracts - be it governance, voting, document validations, cloud computing, medical history. You name it and there was someone ready to solve the problem with proper security and decentralization. 🤦♂️
ICOs, who can forget that. Entrepreneurs are dreamers and they sell a dream and an execution plan when they want to raise money. When it's a VC validating their thesis, the chance of a scam is less. However, when projects can create their own money and raise valuable cryptocurrency against it from novice investors, scams are bound to happen. It was as if the entrepreneur's dream was to create a dream that can be sold.
The cryptocurrency world has changed drastically from then to now. Top projects now seem more like projects that are progressing towards eventual success. Real-world applications are taking shape as opposed to creating a utopian world. I can't begin to tell how meaningful and relevant DeFi is! Real-world finance - interest rate curves, asset swaps, borrowing, lending, market-making - all happening in a truly decentralized manner, driven by algorithms. Then, there are NFTs! Everyone knows that gaming is a growing industry and is seeing a lot of development - be it VR/AR/Gestures/Facial or Voice-driven gaming. NFTs will blend in so well within the industry. Then there are applications of NFTs in the field of creative arts. Independent artists don't necessarily have to rely only on social media giants, art houses, music companies to be successful. NFTs help them monetize their work. The point is NFTs also seem like a project that will find mass acceptance going forward.
Of Course, there will always be Bitcoin. Banks want to trade it, Money Managers want to hold it and there are companies that are hoarding it on their balance sheets. The store of value debate is over and Bitcoin has almost won it. Regulatory approvals are pending but I think that is not a risk in 2021 (It is a risk in the developing world but the investable capital is in the developed world).
I have not seen every bear market in Bitcoin but I think the one between 2017 and 2020 was the most significant for cryptocurrencies. Investors in new technologies always have a J curve in mind. I think with respect to cryptocurrencies, we are at the inflection point from where mass adoption is about to start (The point from where the curve turns towards the upside). The future seems bright indeed for all those holders who kept their heads down during tough times.