Hindsight
Looking back on 2023 and 2024, DePIN was a dominant force with numerous projects launched in the space. Unlike other sectors within the Crypto space, DePIN is a lot more than mere speculation and investment opportunities. DePIN is heavily geared towards passive income and income-generative models. For many DePIN participants, the speculative aspect is simply a bonus on top of the passive income being generated.
DePIN has become a predominant player in the world of passive income, especially for Crypto entrepreneurs. Many passive income enthusiasts have adjusted their strategies and long-term models to incorporate DePIN and its endless opportunities. I have stated that those who firmly establish themselves within this sector will be significantly rewarded in the future.
There has been a lot of talk regarding AI and how it is replacing jobs and is expected to replace even more in the years to come. Which sector in the Crypto space goes hand in hand with robots and machines? That’s right, the Machine Economy… DePIN. This sector is the most primed and well-positioned niche to benefit from an AI-based world. It has a high probability of success.
The Best Bear Market Model
There is much less talk now regarding bear markets as Bitcoin is about to enter its most exciting phase. However, bearish seasons are part of any healthy cyclical pattern. Yes, just as gold had a far-reaching impact after the introduction of gold ETFs, Bitcoin is likely to follow a similar pattern. This could soften future bear markets.
This would render them less severe and even shorter than their usual timeframe of approximately 2 years. However, bear markets are unlikely to become a thing of the past, as they will always manifest, even if less severe. This is where DePIN begins to shine even more brightly. Unlike traditional DeFi and crypto-based passive income models, DePIN does not require capital deployment.
Remember, DeFi is a seasonal “business model” and many DeFi investors sell their yield-generating assets before a bear market to preserve the value of their business. DePIN models enable and encourage ongoing income generation regardless of the season, making it the ultimate bear market strategy. Yes, bear markets have a way of suppressing opportunities and optimism. However, DePIN can continue to produce the goods.
The value of tokens earned will drop, but if there is no capital in the form of collateral, where is the risk? It’s this dynamic that is yet to be realized and experienced in an extended bearish season and is yet another catalyst that will help propel DePIN even further in the future. The Machine Economy has multiple advantages and as these become more apparent, expect the sector to experience even more growth.
Final Thoughts
DePIn is primed for future expansion. Establishing oneself within this sector in its formative stages is a wise move. DePIN market dominance is 3.9% and I expect this to move higher relative to the entire Crypto market. In other words, it will outperform the benchmark, making it one of the best opportunities within the Crypto space. Don’t sleep on DePIN! See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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