Challenges and Opportunities in the Encryption Industry: From Low Points to New Peaks

Recently, social media has been filled with criticism and ridicule of the current state of the encryption industry, including some successful individuals in this field. As a practitioner, I believe it is unnecessary to stand on a moral high ground and blame others simply because the industry is in a downturn. After all, it is the existence and development of this industry that has led to their achievements today.

Currently, the encryption industry is facing a downturn similar to that of 2018 or 2022. This is not just a price issue, but also a shake in people's confidence in the industry. The past two years were seen as years of hope, but now most people scoff at this. The main reason is that the much-anticipated "altcoin season" has not arrived as expected, coupled with the fact that the industry seems to have failed to cultivate new strong narratives in the past two years.

However, the real impact on the industry may still come from external factors. In recent years, the rapid development of artificial intelligence has captured most of the investors' attention, including the encryption industry. Many practitioners, especially developers, have turned to the AI field. This has become the last straw that broke the confidence of the industry.

Facing the disappearance of the imitation season, the lack of new narratives, and the rise of AI, the encryption circle seems to be in a dilemma. However, a trough is often a prelude to a new peak. So, where are the current and future opportunities in this industry?

First of all, regarding the altcoin season, although we may not see another crazy overall rise like in 2017 or 2021, there have still been many niches over the past two years that have created wealth myths. This trend may continue in the future, requiring us to adjust our mindset and expectations, and to look for the "Amazon" in the industry.

Secondly, in terms of the new narrative, stablecoins are receiving widespread attention. Whether in the West or the East, stablecoins have become a hot topic. Its successful breakout may bring revolutionary changes to the industry, much like the launch of Alipay back in the day. The prosperity of stablecoins is expected to significantly expand the user base of the encryption sector, bringing long-awaited new users and the industry's "iPhone moment."

Finally, regarding AI, blockchain technology is likely to become a native tool for AI, addressing the issues of information transmission between machines and real interaction between machines and humans. As AI agents develop, ensuring that communication between machines is secure, reliable, and verifiable by humans may make blockchain technology the best solution.

In the face of these changes, we should accept and adapt to the trends with pleasure, rather than resist or curse them. The encryption industry will not remain in a downturn forever; now is the time to rise again against the wind. Let us explore this challenging and opportunity-filled industry together with a rational and positive attitude.