The Transitionary Maturation of Crypto & WEB3

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28 Aug 2024

Crypto Heart Transplant
Since Bitcoin emerged, speculation has been the heartbeat of the Crypto space. Newcomers surprised by Crypto’s volatility should have been around in the early days. Bitcoin and Ethereum ETFs have created a more stable market, regarding volatility. However, it’s still the most volatile financial market and will remain that way for some time. Altcoins and memecoins play a significant role in maintaining volatility.
The idea that you can enter the Crypto market while simultaneously avoiding volatility is a myth at best. However, even though volatility remains, it’s not necessarily indicative of gains. Speculation, especially within the micro-cap market is a good move provided you gain exposure to the assets set for future dominance. However, the game is beginning to change. There is a new dynamic that is becoming a lot more prevalent, regarding the extraction of value.
This is the aspect of participation. Essentially, Crypto has been dominated by speculation. However, with the expansion and maturity of WEB3 and tokenized models, participation is becoming a lot more prevalent, regarding value extraction. Investors and traders enter the market with a single goal in mind, to extract value. Participation enables the same outcome while simultaneously reducing risk and providing stellar returns.
Participation Replaces Capital
This particular dynamic is evident within the Creator Economy and SocialFi sector. Contribution and participation are a form of capital within this new world. Influence, accuracy, and presentation work to further enhance the power of this dynamic. This model dominates WEB3 opportunities and is evident in WEB3 expressions such as DePIN. Just as early investors secure alpha, adoption and participation within the world of WEB3 are becoming increasingly viable.
All of this is made possible by tokenization and other groundbreaking ideas. Much of the risks associated with Crypto can be mitigated by strategies that operate within the confines and creativity of WEB3. This becomes increasingly attractive as the risk/reward ratio favors the participant rather than the investor. This dynamic will attract users/participants into the WEB3 space, specifically, SocialFi and the Creator Economy.
WEB3-based economic activities will produce value and as a result, enrich participants. Speculation is not truly economic making this gradual shift a healthy development for Crypto and the WEB3 space. The Creator Economy is an integral aspect of this development, causing SocialFi projects to emerge from obscurity and fresh creativity. The concept of WEB3 is naturally economic, making such a shift incredibly bullish for WEB3 as a technology and an enterprise.
Conventional economies require participation to profit. WEB3 economies are no different. Simply being an investor will limit rewards. The incentivized economy will create a powerful synergy through the power of investment and participation. Participants in this new economy will outrun speculators. Imagine speculating on the currency of a particular economy, compared to the gains realized by the participants. The returns are worlds apart.

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Final Thoughts
This dynamic is set to accelerate within Crypto, particularly, the WEB3 space. Investing remains viable. However, as this industry matures, it will become more economic. Early adopters, regarding participation, are primed for significant gains by the turn of the decade. All the best and I will see you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.