Challenges and Opportunities in the Encryption Industry: Finding New Possibilities in the Valley

Recently, social media has been filled with criticism and mockery of the current state of the encryption industry, including from those who have achieved success in this field. As a professional in the industry, I believe there is no need to stand on a moral high ground and attack due to the current downturn. After all, it is the existence and development of this industry that has enabled many people to attain their status today.

Currently, the encryption industry is indeed facing a downturn similar to that of 2018 or 2022. This is not just a price issue, but also concerns the wavering confidence of people in this industry. The past two years were seen as a period full of hope, but now that hope seems to have been scoffed at by most people. The main reason is that the long-awaited "altcoin season" has not materialized as expected, and the industry seems to have failed to nurture new strong narratives over the past two years, with some emerging concepts quickly becoming fleeting.

What makes matters worse is that the rapid development of artificial intelligence in recent years has captured most of the attention of investors, including in the encryption industry. It is understood that many practitioners, especially developers, have turned to the AI field. This has undoubtedly become the last straw that broke the confidence of the industry.

In the context of the disappearance of copycat seasons, the lack of new narratives, and the rise of AI, the encryption circle seems to be engulfed in sighs. Moreover, the recently emerging "coin stock" track has further diverted the limited liquidity in the market.

In the face of these challenges, we can't help but ask: where are the opportunities in the encryption industry now and in the future?

First of all, regarding the Shanzhai season, although we cannot predict whether there will be a crazy market like in 2017 or 2021, there have still been many wealth creation myths in the past two years. However, this trend is no longer widespread, but concentrated in specific fields or sectors. This trend is likely to continue, and we need to adjust our mindset and expectations.

Secondly, in terms of new narratives, the recently popular stablecoins may be worth looking forward to. Whether in the West or the East, stablecoins have become a hot topic of discussion. The successful promotion of stablecoins could bring revolutionary changes to the industry, much like how Alipay solved the issue of online payment security back in the day. This may take 1-2 years to settle and develop.

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

In the face of these changes, we should accept and adapt to the trend with an open mind, rather than resist or scold. The encryption industry will not remain in a downturn forever; perhaps now is the best time to set sail again. Let us remain rational and embrace new challenges and opportunities.