The Current State and Future of the Encryption Industry: Challenges and Opportunities Coexist

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

Currently, the encryption circle is facing a downturn similar to that of 2018 or 2022. This is not just a price issue, but also a doubt and wavering among people regarding the industry. The past two years were seen as years of hope, but now most people scoff at this hope. The main reason is that the long-awaited "altcoin season" has yet to arrive, coupled with the industry seemingly not giving rise to new narratives, or some new narratives being short-lived.

However, the real shock to the industry may still come from external factors. In recent years, the rapid development of AI has captured investors' attention, and many practitioners in the encryption industry, especially developers, have turned to the AI field. This has become the last straw that broke the confidence in the industry.

Facing the disappearance of the copycat 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 hotbed for nurturing opportunities. So where are the current and future opportunities in this industry?

First of all, regarding the altcoin season, although it may not experience the crazy full-blown explosion like in 2017 or 2021, there have still been many subfields in the past two years that have created myths of wealth. This trend may continue in the future, requiring us to adjust our mindset and expectations. Just like after the internet bubble burst, Amazon's stock price initially fell by 90%, and then rose more than 600 times over the next 20 years. Finding the "Amazon" of the encryption industry will be a new opportunity.

Secondly, regarding the new narrative, stablecoins are becoming a hot topic. Not only is there lively discussion within the industry, but they have also attracted the attention of regulatory agencies. The influence of stablecoins should not be underestimated; they could bring revolutionary changes to the entire industry, much like how Alipay solved the online payment security problem back in the day. The development of stablecoins is expected to bring new users to the encryption circle in the next 1-2 years, achieving the industry's "iPhone moment."

Finally, regarding AI, blockchain technology is likely to become a native tool for AI, solving the issues of information transmission between machines and real interaction between machines and humans. With the development of AI agents, ensuring that communication between machines is secure, reliable, and verifiable by humans may be the best solution offered by blockchain technology. This direction is still in its early stages for blockchain, but the potential is enormous.

In the face of these changes and opportunities, we should maintain an open and accepting attitude, rather than resisting or cursing. Although we are currently in a low period, the encryption industry will eventually overcome its difficulties. Let's stay rational and embrace the next wave of opportunities and challenges.