Challenges and Opportunities in the Encryption Industry: Rebirth in the Valley

Recently, social media has been filled with criticism and mockery of the current state of the encryption industry, and even some individuals who have previously found success in this field have joined this camp. However, as an insider, I believe there is no need to stand on a moral high ground to blame others just because the industry is at a low point. After all, it is the existence and development of this industry that has made them who they are today.

Currently, the encryption sector is indeed facing a downturn similar to those in 2018 or 2022. This is not just a price issue, but also a shaking of 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 long-awaited "altcoin season" has yet to arrive, coupled with the industry seemingly failing to foster new strong narratives over the past two years.

In addition to internal industry factors, external factors have also caused immense pressure. In recent years, the rapid development of AI has captured the attention of investors, and many practitioners, especially developers, have turned to the AI field. This has become the last straw that crushed the encryption industry.

In the face of the disappearance of the imitation season, the lack of new narratives, and the rise of AI, the encryption circle seems to be filled only with the sighs of practitioners. However, a downturn often serves as the soil for new opportunities to sprout. So, where are the opportunities for this industry now and in the future?

First of all, regarding the Shanzhai season, although there may not be a crazy outbreak like in 2017 or 2021, there have still been many wealth creation myths in the past two years. However, these opportunities are more concentrated in specific fields or sectors, requiring participants to adjust their mindset and expectations.

Secondly, in terms of the new narrative, the stablecoin that has recently attracted much attention may become a breakthrough. Whether in the West or the East, stablecoins have become a hot topic of discussion. The influence of stablecoins should not be underestimated; their successful breakout may bring revolutionary changes to the industry, similar to the launch of Alipay back in the day. The prosperity of stablecoins is expected to greatly expand the user base of the encryption circle, truly opening the market and bringing a long-awaited wave of new users.

Finally, regarding AI, blockchain technology is likely to become a native tool for AI, addressing the issues of information transmission between machines and human-machine interaction. With the development of AI Agents, ensuring the security and reliability of communication between machines, and making it verifiable by humans, blockchain technology may play a key role.

In the face of these changes and opportunities, we should gladly accept and adapt to the trends, rather than resist or curse them. Rationality will ultimately triumph over emotion, and the encryption industry will not remain in a downturn forever. Let us once again brave the wind and embrace the rebirth and development of the industry.