The promise of a decentralized internet (Web3) built on data sovereignty has not materialized. The fundamental reason is that the general population does not value privacy and data ownership enough to abandon convenient, centralized Web2 services, thus preventing Web3 from reaching critical mass.
The real challenge in crypto isn't identifying and buying an asset early. The true difficulty lies in having the conviction to hold that asset for over a decade through extreme volatility, regulatory threats, hard forks, and security risks. Most early buyers sell far too soon.
Investors seasoned in crypto's extreme volatility and market cycles develop a unique psychological resilience. This experience makes them better equipped to handle the comparatively minor fluctuations of traditional stock markets, allowing them to remain rational and stomach risks that would paralyze others.
Beyond a strong thesis, Limited Partners (LPs) critically evaluate how crypto fund managers understand and adapt to crypto's four-year bull/bear cycles. A manager's ability to strategically time the market—knowing when to be aggressive versus when to take profits—is a key filter for LPs allocating capital in the space.