The journey from Bitcoin's inception to today has seen digital currencies evolve for over a decade. While this period may seem short, the space has undergone multiple cycles of innovation, giving rise to numerous new sectors—from first-generation cryptocurrencies and smart contract platforms to decentralized finance (DeFi). Each wave has produced standout projects. Some, like Bitcoin and Ethereum, have remained at the forefront. Others have flashed brightly but faded quickly, like meteors crossing the night sky.
What explains these differences? Could the underlying reasons reappear in new projects or sectors? As investors, it’s essential to reflect on these patterns, learn from them, and continuously refine our thinking. This iterative process helps us make better decisions and identify valuable opportunities in emerging trends.
Though my own experience in crypto investing may not match that of industry veterans, I’ve been through at least one full market cycle—both bull and bear phases—and witnessed the rise and fall of countless projects. These observations have shaped my perspective.
In this field, avoiding strategic and directional mistakes is paramount. To do so, we need a macro-level framework tailored to the unique nature of digital assets. Below, I’ll share some of these insights periodically.
In the early days of Bitcoin, enthusiasts and developers promoted it with passion and idealism. Their rallying cry was: “Have you heard of Bitcoin? It’s a new form of money—decentralized, censorship-resistant, and private.” This message highlighted core values like decentralization, anti-censorship, and a profound desire for financial freedom and privacy. Satoshi Nakamoto’s anonymous presence added an aura of mystery and reinforced these ideals.
As the first and largest cryptocurrency, Bitcoin’s DNA has become deeply embedded in the entire digital asset ecosystem. This genetic code influences the direction and evolution of the space. New projects that lack these core traits are unlikely to endure.
The two most vital characteristics I see in this ecosystem are decentralization and freedom.
Decentralization here doesn’t mean the absence of people, teams, or governance. Instead, it refers to a culture of inclusivity, an architecture that res monopolization, and a grassroots-driven momentum. Together, these elements create a bottom-up revolutionary force—a spark that can grow into a wildfire.
This organic vitality allowed Bitcoin to grow from an obscure experiment into a transformative global asset. In contrast, some projects shine briefly but lack staying power, often because they miss these essential qualities.
Consider EOS, one of the earlier prominent projects. Its main selling point during fundraising was high transaction throughput and strong performance—and it delivered on that technically. So where did it fall short? In my view, it lacked the inclusivity and anti-monopoly spirit inherent to native blockchain projects—what we often call decentralization.
A network controlled by just 21 nodes isn’t fundamentally different from a company running 21 servers. It doesn’t allow an unknown individual to plug in a miner from any corner of the world, so it loses its grassroots appeal. It doesn’t have thousands of nodes maintaining and participating in the network, so it isn’t decentralized. And it didn’t have leaders like Vitalik Buterin engaging openly with the community, welcoming feedback and critique—so it lacked inclusivity.
Among newer projects, NXM in the DeFi insurance sector is another example. What dims its appeal in my eyes are its KYC requirements and strict project eligibility rules. KYC limits participation to a small group, undermining grassroots inclusion. Strict eligibility means only established, low-risk projects can participate—but these are already time-tested and lower risk. What’s the point of insurance in such cases?
True blockchain-native insurance should be open, permissionless, and accessible to all. That’s why I’m skeptical about NXM’s long-term prospects, even if it’s a temporary leader.
I believe that decentralization, censorship resistance, and grassroots participation are not just historical success factors—they will continue to be essential for any project that aims to make a lasting impact.
Frequently Asked Questions
What does decentralization mean in cryptocurrency?
Decentralization refers to a system where control is distributed across many participants rather than held by a central authority. In crypto, it often involves open participation, transparent rules, and resistance to censorship or single points of failure.
Why are grassroots communities important in crypto projects?
Grassroots involvement fosters organic growth, innovation, and resilience. Communities that are open and inclusive tend to attract diverse contributors, which can help projects evolve and adapt over the long term.
How can investors identify promising crypto projects?
Look for projects that value openness, have strong community support, offer real utility, and align with core blockchain principles like decentralization. Avoid projects that rely heavily on centralized control or lack transparency.
What is the role of ideology in crypto investing?
Ideology often drives adoption and loyalty in the crypto space. Projects that embody values like financial freedom, privacy, and open access tend to inspire stronger communities and more sustainable ecosystems.
Can a project succeed without being fully decentralized?
While some centralized projects may achieve short-term success, they often face challenges around trust, security, and community support over time. Decentralization tends to create more robust and enduring systems.
Where can I learn more about evaluating crypto investments?
👉 Explore additional investment strategies to deepen your understanding of market trends and project analysis techniques.