First things first I am not a financial advisor and like everyone else you always need to do your own research before investing. What I would like to offer though is another perspective of the view of the market one that might not currently be recognized.
I feel it is easy to say the crypto markets are currently reeling from the news that has been coming out of China. I had previously written about how China's pullback is a huge opportunity for the West and the US to attract more miners and thus rid Bitcoin of the idea of Bitcoin being controlled by the Chinese. However, I would be lying if I thought this sheer volume of news coming out of China would occur as rapidly as it has. Naturally with rigs getting shut down the price is slipping the one upside is that the mining difficultly is going down and mining is becoming easier.
While all of this news is coming out of China and the markets are getting crushed one this is occurring that I find to be really positive. Money from either wealthy individuals or large corporations continue to pour into the space. It is common to see now a company raising tens of millions of dollars from investors. While it used to be individuals or corporations that were tied to crypto this is no longer the case. Even with the bearish market taking control these new sources of income continue to add more money into the field as a whole.
To me this shows that the idea of blockchain, privacy, and others is not waning. That people that would not normally be in the field of crypto are paying attention and are seeing this pullback as an opportunity to but in. While you and I could rail against the wealthy and huge corps. taking part in the very thing we where hoping that they wouldn't this has a huge upside and that is legitimacy. There were a few different headlines/projects that I feel really back up what I am saying.
The one that caught me off-guard the most was when I stumbled across the former owner of the Los Angeles Dodgers, Frank McCourt, pouring $100 million into building a decentralized social media platform. Frank McCourt is a real estate developer and really not an individual that has many technology based investments if any at all. While he did not own the Dodger for a long period of time it was quite impactful with McCourt really being the beginning of the Dodger hosting huge payrolls to get into the playoffs and win a World Series. Once he and his wife of 30 years though separated and later divorced the investments he had became complex and he ended up selling the team for a record price of over $2 billion. Overall, this pretty massive investment in a decentralized social media platform is really unique for the type of investor that Frank McCourt is and I believe shows how privacy issues are something even the wealthy are taking seriously thus this type of investment.
A huge company that has made some waves in an interesting way is BlackRock the world's largest asset manager. While other asset managers and banks have set up trading desks or begun trials with blockchain that is not what the move by BlackRock is about. The job posting from BlackRock is for an individual to develop a blockchain strategy for its portfolio management system Aladdin. Aladdin is not a new thing as it has been around since the companies founding and is really there secret that has made BlackRock so successful. Besides being able to build what caught my attention the most from reading about the job posting is that BlackRock really wants someone to be able to help the firm not only understand but thrive in the world of tokenization. With more and more things becoming tokenized the worlds largest asset manager is now taking notice and does not want to be left behind which I feel shows that the future is very bright in this field!
The last example I want to let yall know about comes from where I am from... Texas. HEB, a Texas-based grocery store, has partnered up with Coin Cloud to install crypto ATM's into 29 stores in the Houston area. What was really cool about this was the 2,000 crypto ATM will be put into one of these stores! Texas has been recently rolling out more and more things to bring crypto to Texas including allowing state banks to hold Bitcoin. This helps those miners out who want to use a bank but due to federal laws cannot access federal banks.
The short term outlook of the market is murky to say the least with news consistently flying in. Long-term though the outlook is much more clear with these companies, and governments in the case of Texas, moving towards engaging more and more with the new frontier. Who will be the ultimate winners and losers though is impossible to say at this stage as it is early on for many of these projects and what they want to concur. It is very important though that the big money players at least engage with the field as if they were to continue to shun it it would take crypto and blockchain much much longer to finally breakthrough. This engagement that is going on is good and the government naturally takes notice to this. While it could be years until the full potential will/could be reached the continued progress in a down/bear market is a huge step in the right direction.
