When people expect the price of something to go higher, they will buy as many as they can, to then sell at the most expensive price possible.
But when price falls, most people will sell. The further the price falls, the more people will sell.
Not many people risk losing, or at least remain patience.
Edward Snowden is the famous NSA whistleblower, and he has faith in cryptocurrencies, regardless how high or low their prices are.
Even when the market crashes, Snowden believes that the cryptocurrency winters will separate scammers from legitimate users who value functionality.
At the TNW Conference 2022 and Consensus 2022, Snowden said:
His opinion comes from his experience: the servers he used to leak documents about government surveillance were paid for with Bitcoin.
Also, Snowden also puts a special interest in cryptocurrencies because blockchains preserve pseudonymity and utility.
According to him, these are the values that persist through market fluctuations.
"It still works whether the price is $60,000 or whether the price is $6," he said.
And here, market crash is just a brief moment before market restarts.
In the world of cryptocurrencies, crashes provide an unusual opportunity to reset a sector.
"When the ground has been cleared, things will grow again."
Having a positive attitude, Snowden managed to eliminate a lot of negative things many people are worrying caused by the market crash.
Regardless, Snowden has raised alarm about Bitcoin’s "disastrous” privacy."
Snowden is also wary of treating cryptocurrencies primarily as investments.
"Everybody’s talking about getting rich and things going to the moon. How is that going to happen if no one is actually using these things functionally? And they work well — they work better every year for the purposes they’re actually intended for," he said.
"Generally, I don't encourage people to put their money in cryptocurrencies as a technology, and this is what distances me from a lot of people in the community," he added.
Snowden also raised alarm about the centralization of digital payment systems.
Blockchain was originally built as a tool to decentralize a system. And here, companies are trying to centralize it to pursue profit. These entities sidestep the pioneers who created and developed the blockchain technology in the first place.
“We need people to recognize that these systems do not exist without their participation - particularly those who are specialists,” said Snowden.
To change this, is a resistance. And this will require sacrifice.