New concepts will emerge in the crypto market in each bull market, with Bitcoin and Ethereum reaching new highs. In the four-year cycle, among thousands of currencies, only Bitcoin and Ethereum remain healthy, and this will remain the case in the next cycle.

Each round of new concepts helps push Bitcoin and Ethereum to new highs, and new concepts are replaced in the next cycle. This cyclical law is destined to cause the industry to experience great ups and downs. This shows that the crazy growth of the crypto bull market is far from the actual value generated. In order to squeeze out the bubble and clear it out, the crypto bear market must be a deep bear. For example, Bitcoin and Ethereum will not be considered over until they fall by more than 80%, and other currencies fall by more than 90%.

The vast majority of people who clear out their positions in the bear market are those who have large positions in altcoins. Because of cyclical concept adjustments, even if there is the next bull market, these altcoins will still not show very high returns, so if these people do not adapt, they are destined to be eliminated.

How to avoid being eliminated in a bear market

You know, no one can avoid losses in a bear market, it's just a matter of how much loss. If you already have a position in a deep bear market, it is not recommended to sell it. After all, the position will come back more or less in a bull market. The most important thing is that we have a continuous cash flow to deal with a deep bear market, that is, bottom fishing in a bear market. The best strategy for ordinary people is to bottom fish in batches when the position falls to a certain position.

When buying at the bottom, you must clearly realize that for those who have been in the cryptocurrency circle for a long time, buying at the bottom is definitely not a means for ordinary people like us to get rich quickly, but a means for us to recover losses and ensure that we are not eliminated. We must recognize this fact. The opportunities in the bull market are our most likely path to getting rich.

Bears are not afraid of not buying at the bottom, and bulls are not afraid of missing out.

As we said before, bottom fishing in a bear market is just to recover losses, and the rate of return of bottom fishing in a bear market will not make us rich in a bull market, so we should not be afraid of not bottom fishing, which will affect our mentality and operations and make us blind, because the most profitable thing in every bull and bear market is to grasp new concepts in the early stage, such as Shib of meme, Uni of defi, Axie of metaverse, Ape of NFT, etc., which all returned dozens of times or even hundreds or thousands of times at their peak. These are all the products of new concepts in the bull market. If we can catch one, we can basically outperform most people who bottom fish, so we must not be afraid of not bottom fishing, as long as we keep learning for a long time, we will have a chance to turn around in this industry.

Why do I think there is nothing wrong with speculating in MEME coins?

MEME with good narrative, strong communication and resonant design can bring more fun and consensus to people than so-called VC projects. VC projects are a hunt of retail investors by project owners, capital, media and exchanges. Next, we will analyze the possibility of MEME coin making money projects from various aspects.

From the user participation level

Many superstar VC projects are nothing more than top brand capital + overseas prominent technical teams + mainstream media + first-tier exchanges jointly issuing coins to harvest users. They first tell some stories from the technical and application levels that retail investors cannot understand or participate in, then promote them crazily, and finally dump them on exchanges. When we heard about this project, it had nothing yet, but the valuation was already hundreds of millions of dollars, and we had to hold their completely useless tokens at a cost dozens of times higher than the capital for a project with no revenue and application. Because users cannot participate deeply in it, after a short period of hype, they basically cut their losses.

From the PE level VC project

It is more like a project of a traditional company, and the token corresponds to the stock of this company. In this respect, cryptocurrency speculation and stock speculation are actually the same. Stock speculation is still regulated by the China Securities Regulatory Commission, while cryptocurrency speculation is basically the unfettered manipulation by project parties and investment institutions. For a project, the annual income is often less than $1M, but the team expenditure reaches tens of millions of dollars a year, and the executives receive millions of dollars in annual salary. Where does such a loss-making project get continuous funds to maintain the team? It can only be shipped through the secondary market. This is purely the project party making money from retail investors, not making money through products. If it makes money through products, the project party will not issue coins to see if it can survive. The MEME project has no PE value, no high team expenditure, and the tokens are very scattered from the beginning.

From the perspective of communication

If a VC project wants to spread, it needs to tell a very complicated story, promote it in a lot of media, and have a team with a star halo or capital support. But even if you have all these, it is still not easy to spread it in a short period of time. It requires a long period of market promotion. In crypto, project time is a risk. The market will change, the team will get better, and retail investors don’t have that much patience. But the spread of MEME is very simple. Everyone can spread it by sending emojis.

From the consensus level

MEME: Holding tokens means reaching a consensus, expanding the consensus and making profits together; VC projects: using the project party’s narrative to reach a consensus, expanding the consensus and more people being harvested by the project party/VC.

From an investment perspective

MEME: As long as the MEME has a good design, a good narrative, decentralized chips, a safe contract, and sustained growth on social media, it can actually be invested in. VC projects: The project can be self-profitable. Only at this time, the project party does not need to continuously ship through the secondary market to maintain the project. I think it is possible to make a profit by holding tokens. But how many projects can meet this condition now?

MEME vs VC projects in the coming year

Without VC, MEME coin can still be popular, but VC projects can basically not be carried out. In this bear market, I think 95% of VCs have lost all their money and have disbanded or stopped investing, and it is difficult for a large number of new VCs to enter the market within a year, so this is back to the last cycle. Think about 2017-2019, there were not so many VCs, and many of the popular coins at that time were MEME. So in the next year, many web3 project coins will not be issued, but the encryption market will continue, and MEME will continue.

Finally, there are still many things that are not written down, such as specific opportunities and specific decisions. These things are often not something that can be summarized in one article.