“Crypto Will Make It, But Not All Of Us Will”, BlockTower Capital CIO Ari Paul Explains Why

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Key takeaways

  • Ari Paul advises crypto market participants not be perturbed by the changing community landscape.
  • He adds that market participants should keep a level head and think long term.
  • His assertions comes at a time when inflation and volatility are being highly anticipated. 

The cryptocurrency market is seeing unprecedented levels of new market participants recently. Market sentiment is very bullish even as more institutional investors, high net worth individuals, retail investors, and even nations are jumping on the cryptocurrency bandwagon to get a piece of the action. The bullish sentiments are also being reflected in the booming crypto-market as price surges have been the talk of the realm.

Although the market is booming and is concentrated on gains, there are analysts putting out very important advice to help guide the market. The latest analyst to talk about the crypto-market and the community holding it together has been Ari Paul, the founder, and CIO of BlockTower Capital.  

The crypto market is highly dependent on its large number of community members. The face of the industry has been shaped by the advocacy of prominent figures, highly placed individuals, and investors who have boosted the reputation of the market with their participation and engagement.  

While recognizing their great contribution, Ari Paul is of the opinion that the crypto market will outlive these prominent figures. He thinks many of them will be shaken off the crypto-market with time due to a myriad of reasons including volatility, bad investments that lead to losses, or scams, and may lose their significance and interest in the market. 

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“Crypto markets have “made it” over any long time frame you look at, but plenty of crypto OGs, traders, and investors haven’t. Many got shaken out on dips, gave up in bear markets, or FOMO’ed into bad assets or bubbles; fell for scams and sometimes deliberately bet on scams.” Wrote Paul, in his Twitter thread.

He adds that this is inevitable as not everyone is bound to make it in the crypto-market but “crypto will make it.” This is the reason he advises community members to adopt the “simple boring way to ‘make it” by avoiding following ideology, overconfidence, and panicking. He also warns against leveraging and dogged following of crypto influencers who are essentially salespersons. Paul stated that the only way to make progress is to spend time learning and playing around with current and new innovations in the industry while also networking with the industry greats.

Significantly, Paul’s advice is coming at a time when the market is seriously anticipating volatility. One key player to point this out was the CEO of Binance Changpeng Zhao ‘CZ’ who said the market should “expect very high volatility in crypto over the next few months.”

However, there is also the prospect of increased adoption of crypto even as inflation fears increase. Bitcoiners, notably CEO of Twitter Jack Dorsey, expect that inflation will change a lot of things. Dorsey’s assertion is proof that as new investors are driven to cryptocurrency in the coming days, their inexperience may escalate the market volatility problem.

This is why Ari Paul’s advice to not panic is very sound to follow as panicking in the face of market volatility could be as harmful as inflation to investors. The cryptocurrency market is bound to outperform in the long term and so patience is always rewarded.