Bears are the blessing. Bulls are the cause.
-Why do we need the bears?
Ideally, nobody ever wants to fall. Literally or figuratively, nobody ever wants themselves, or their concerns, to hit the dust, or to put it less vigorously, fall down. Particularly with crypto, falling prices could be the death of many, for the loss they shall have to endure are many atimes, unbearable.
Traders wish to never have spoke trades in the market when prices dip, and people are wiser than to invest their monies into a falling crypto option. Futures traders may care less, but spot traders (and holders) would rather chew steel than buy a token when it is expected to fall. And that is typically fine.
Let’s bring this into our human world. Men fear falling. They weep and cry and curse when “bad things” happen to them and cause them to fall from their “esteemed” heights. That is also understandable. The feelings that come with losing is not a good one and nobody ever wants to feel that way, but here’s why my topic is structured as it is.
Let us go on-chain. April 2022, the ETH was dangling around the $3.5k region, being higher on some days, and lower on others. It was about this same time that the Otherside, Yuga Labs meta land project launched, and of course, it did extraordinarily well, being the highest grossing NFT collection ever, raking over $317M (other sources have other rates, this is just a generally estimated figure) (and $175M spent on gas!) in sales. Of course that was a high time not just for Yuga Labs, but the entire ETH eco at that time. Ever since that period, the ETH price saw a consistent decline, and eventually went on to drop to the lowest it had in over 18 months, to the $900 region, and of course, I am not trying to pin the blame for this decline on Yuga Labs. Several other projects did mint around that period too, but here’s what I want to draw to your attention.
The Otherside did marvelously well(I would eventually write on why I personally feel the Yuga labs awesome event was the resistant point for ETH bulls, maybe that will help you make sense on why I use Otherside for reference here), and just after basking in the hype of the power it possesses, the ETH chain fell to the lowest it had been at in over 18 months, in only 2 months. Although there were other causes behind this fall, the first key here is that just after every marvelous feat, prepare for a fall. And we saw something this similar in the Solana ecosystem as well.
Now don’t get me mistaken, I am not trying to blame Yuga labs for crypto prices crash. Not at all. But the series of activities that followed after its mint, coupled with the Luna attack and heavy BTC shortings, all these clearly inspired the crypto FUD.
Okay okay, how does this make any sense? The bulls are the cause? Would the perpetrators of the Luna event have thought to do so without Luna getting above $50 despite the vulnerability? Yeah. That’s right. Most probably not. When you as an individual are yet to register your feet, you face lesser attacks, compared to what the average ‘up’ guy faces, and this isn’t in anyway to water down what every one faces in their lives. As a result of the bulls in your life (as it was with Luna), you get a lot of unwanted attraction, especially from evil players who only want to exploit you for their own benefits. Of course, without the bulls presence, you’re less likely to be that attractive. The bull are the cause.
So then how are the bears a blessing?
So then how are the bears a blessing? Let’s go back on chain. Now we can see that the ETH is to be experiencing a fork soon, moving it from a PoW to a PoS mechanism. An opportunity for a major adjustment presented itself within the bears.
Let’s also talk about how many more people would have become adopted into the crypto community. With cheaper entries for currencies like BTC, which was at $60k region during the bulls, a rather high entry point, compared to the $17–19k region at the bear. ETH from $4k drops to $1k, one-quarter of what an average joe would have had to spend to own. 1 ETH.
Thanks to the bears, more people can now get into crypto as entry prices are now friendlier. More opportunities also presents itself at the bear as more builders would arise, less noise would be present, underperforming chains would be spotted, and newer protocols and projects would have the opportunity to rise and make a name for it/themselves. All these opportunities of course, courtesy of the bear market. That’s quite how it is in our human lives too. When you fall, and believe you’re at the bottom of the pit, there’s no other place to go than up. You have the time to re-strategize, identify your mistakes and rework on them, while combining your already existing knowledge and experience to grant yourself an easier and probably faster redevelopment. You also get the opportunity to try more things, as you are back at the drawing room, and everything you should be doing now should be concerned with being better, an opportunity you would have almost thought to not bother yourself with because you were more focused on other things at your bull.
Of course I do not intend for anyone to take a crash before trying to be better, but perhaps you can see that there is more room for certain things at the bottom than at the top. And if you always think like you’re at the bottom, you might never have to be too worried about getting knocked over by the bears, because you’re mentally always around them.
All I have written here is just mental plays. Just my thoughts and how I tried to explain with some real world happenings. Of course I may be wrong about somethings, but my views are strong about my headline. The bears are the blessings, the bulls are the cause. I hope this made sense to you.