A year from now, we will not be talking about cryptocurrencies. Rather, we will be talking about three crypto markets: The Bitcoin value proposition, the Ethereum ecosystem, and the Meme ecosystem. At least this is what Paul Brody, global blockchain leader, is predicting.
Brody agrees with other crypto experts that Bitcoin is digital gold. Depsite its volatility, it is better than gold in some ways. He points to the fact that when gold prices go up, people mine more gold. We all know that the days of mining Bitcoin are numbered.
He sees the Meme ecosystem as the smallest of the three, but points out that it has different characteristics than Bitcoin and Ethereum. He sees meme coins, like Dogecoin, as “investing in entertainment.”
The third category, the Ethereum ecosystem, will be the largest, in terms of transactions and applications. Brody stated pointed out the Ethereum ecosystem will grow “around sectors such as decentralized financial services and storage” and points out that it will be “driven by demand for those services and the growth of that ecosystem.” This ecosystem would include all cryptos based on Ether as well as similar functioning cryptos, like Cardano.
Brody’s prediction actually makes sense. There really are important differences in each of these three developing markets. On a practical level, why does it matter what we call them? Its all related to continued growth. As these markets grow, semantics will make a difference. It will bring clarity for traders and investors.
Despite recent setbacks, each of these three “markets” continue to expand and grow. Prices will ultimately follow. You cannot have a growth of industry without prices being affected. Bitcoin will grow in value because it is a finite digital resource. Most investors will want a piece of this golden pie. Memes, gaming, NFT’s, and countless applications that depend on the Ethereum network will continue to expand, pushing the markets further into a positive direction.
One huge group of investors are sitting on the sidelines waiting on the next big opportunity.
CNBC’s Jim Cramer predicts that a lot of people that thought that they missed out when Bitcoin exploded in growth will jump on the bandwagon if it has another pullback.
The rest of us should celebrate these pullbacks. The markets are correcting. There will always be volatility. If you cannot handle the volatility you might be in the wrong hobby or game or investment venture. However, those of us that can afford to be patient, we might just be on the cusp of an opportunity of a lifetime.
The Lynx
As always, buy, sell, and trade at your own risk. Only invest what you can afford to lose.
