The Current State and Future of the Encryption Industry: Distinguishing the False from the True, Staying Patient

Recently, the topic of "encryption shame" has sparked heated discussions in the industry. Many people find it hard to speak out because they are involved in the encryption or blockchain industry. This sentiment is not only present among ordinary investors but even among core developers who have been deeply engaged in the industry for many years.

A well-known Ethereum developer once expressed the opinion on social media that the encryption asset industry is akin to a casino, believing that it has not created real value for society. He pointed out that the attempt to position Bitcoin as a safe-haven asset has failed, and decentralized exchanges have facilitated speculation rather than substantive value creation. Furthermore, the current high TPS technology is primarily used for issuing a large number of Meme Coins, rather than creating truly valuable services or products.

However, technology itself is not the goal; the key lies in how to leverage technology to bring substantial improvements to the public's lives. Currently, the main issue facing the encryption industry is the lack of practical applications. Aside from Bitcoin and a few ecosystems, most projects still lack substantial application scenarios.

Nevertheless, we should not overlook the practical significance of encryption technology in the present. Taking Bitcoin as an example, it is the first successful decentralized digital asset experiment, operating without the need for central banks or other authorities to maintain it. This characteristic allows it to circulate freely on a global scale, without the intermediary role of traditional financial institutions. For some investors, it serves as a long-term store of value, similar to the role of gold, which can mitigate the risk of depreciation of fiat currency due to inflation.

Stablecoins also play an important role in the field of cross-border payments. An international remittance service under a well-known payment platform allows users to make free transfers using stablecoins, which further reduces the cost of international remittances and increases efficiency.

Looking ahead, the development potential of encryption assets and blockchain technology is enormous. The core characteristic of blockchain technology is that the on-chain information is immutable, which increases the transparency and traceability of data. Its application in the charitable sector can enhance the trust of donors; in the food supply chain, blockchain can be used to trace the source and history of food, ensuring better food safety. At the same time, its encryption technology can be used for identity verification, ensuring that only authorized users can access specific resources, while enhancing data security and reducing the risk of identity theft and data breaches.

Governments around the world are gradually establishing relevant legislation for the encryption industry, reflecting a certain degree of recognition of the sector. The European Parliament has passed the "Regulation on Markets in Crypto-Assets," providing a comprehensive regulatory framework for encryption assets across Europe. The United States has successively approved spot ETFs for Bitcoin and Ethereum, marking the entry of encryption assets into the mainstream market. The President of Russia has signed a law legalizing encryption mining and emphasized the importance of encryption assets as a promising economic area.

In the face of current challenges, we need to maintain patience and confidence. The development of the encryption industry takes time, just like other emerging technologies, and its true value may take years to fully manifest. We should continue to explore the practical applications of encryption technology to lay the foundation for its future widespread use. At the same time, we also need to view various phenomena in the industry rationally, protecting our own safety while staying true to our original intention and insisting on promoting the healthy development of the industry.