Current Challenges and Future Opportunities in the Encryption Industry

Recently, there have been many criticisms and mockeries of the current state of the encryption industry on social media, including some individuals who have previously achieved success in this field. As a practitioner in the industry, I believe there is no need to stand on a moral high ground to criticize simply because the industry is in a downturn. After all, it is the existence and development of this industry that has allowed them to achieve what they have today.

It is undeniable that the current encryption circle is facing a downturn similar to that of 2018 or 2022. This is not only due to price issues but also because of people's doubts and hesitations about the industry. The past two years may have been seen as a hopeful period, but now most people have become dismissive of that hope. The main reason is that the long-awaited "altcoin season" did not arrive as expected, coupled with the industry seemingly failing to establish new compelling narratives over the past two years, or some emerging narratives quickly collapsing.

However, the real 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 the attention of a majority of investors, including those in the encryption industry. It is reported that over the past year, many industry practitioners have shifted to the AI field, especially developers. This trend has further exacerbated the difficulties in the encryption industry.

In the face of the disappearance of the "shanzhai season", criticism of the "lack of new narratives", and the strong rise of AI, the encryption circle seems to be in a predicament. In addition, the recently emerging "coin stock" track has also directly diverted a portion of market liquidity.

However, the trough is often a prelude to future peaks. So, where are the opportunities in this industry now and in the future?

First of all, regarding "Shanzhai Season", although there may not be another crazy overall rise like in 2017 or 2021, there have still been many subfields creating wealth myths in the past two years. This trend may continue in the future, and participants need to adjust their mindset and expectations. Just like Amazon when the internet bubble burst, although its stock price once plummeted by 90%, it rose more than 600 times in the following 20 years. Therefore, finding the "Amazon" in the encryption industry has become a new opportunity.

Secondly, regarding the new narrative, the stablecoin sector, which has recently garnered much attention, is worth focusing on. Whether in the West or the East, stablecoins have become a hot topic. The impact of this technology may have been underestimated, and its success could bring revolutionary changes to the entire industry, similar to the launch of Alipay back in the day. The prosperity of stablecoins is expected to significantly expand the user base of the encryption circle and bring new vitality to the market.

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

In general, when some important changes have occurred or are about to come, we should actively embrace and adapt to these trends. Criticism and insults do not solve problems; rather, they demonstrate a resistance to change. Rationality will ultimately triumph over emotion, and the encryption industry will not remain in a downturn forever. Let us greet the challenges and opportunities of the future with a positive attitude.