Buying Crypto During Downturns was Spectacular: Bernstein

• BTC is still 60 times up from 2014 low, and ETH is up 14 times from its 2018 low. 
• The Crypto industry has always emerged victorious, but this time things are different. 
• The Crypto industry still touches only 5% of internet users. 

All were heard about the ongoing crypto winter and the bear market that caused havoc in the industry, FTX collapsed, creating a contagion effect that affected many players, But Bernstein managed to see the silver lining in the dark clouds, saying that despite its low, BTC is 60 times up from its 2014 low state. ETH is 14 times up from its 2018 lows, despite having slid by 68% in 2022. 

The crypto industry has been resilient and is known to have fought back from such down points, and the industry knows how to take a punch and keep fighting. It can be argued that the surrounding circumstances are slightly different this time. 

Analysts Gautam Chhugani and Manas Agrawal wrote.

“Crypto is probably among the few industries that can clock frontier-tech-like growth, in a broadly maturing tech landscape.”

As per the data crypto industry still touches only 5% of total internet users, suggesting there is still a lot of room for new entries that could be adopting the crypto industry provided great products and services are offered. 

Investors are still advised to focus on the long-term consumer adoption of the crypto industry. This adoption must be in tandem with the growth of the internet, as blockchain applications are becoming more and more popular. 

Bernstein expects that as the blockchain applications mature and scale up, the monthly user base will be increased by 100-fold in the long term. These applications provide gaming, social networking and NFT-based digital brands a better option than their existing peers. 

Cryptocurrency is based on blockchain technology, and the technology has the potential to offer much more than just trading and investing. Consider smart contracts, for example; they could solve several problems in the insurance industry. 

Continuing the example, suppose a frequent flier who cannot bear flight delays due to the fear of incurring major business losses would generally opt for flight delay insurance. In the general case, if the flight is delayed by the pre-agreed time, the flier will present the documenting proof of the delay to claim the insurance, which the company would then verify. Only the insurance amount would be released if all were proven right. 

Now let us bring smart contracts into this; here are three parties, the flier, second the insurance company, third the airline company. If all these three agree upon certain conditions and sign a smart contract, then when the flier books the ticket with the airline, a notification will be sent to the insurance company, and if, due to some unavoidable reasons, the flight is delayed by the pre-agreed time of say 5 hours, the condition in the smart contract would be fulfilled and the terms executed. That way, the flier could have the money in the account before landing.  

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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