Crypto is not only here to stay, its future looks very robust. I believe that these three reasons establish the fact that crypto will not fail.
1. The Growth of Stablecoins.
The total value of all stablecoins just recently passed the 100 billion mark. This is an increase of 70 billion since the beginning of the year. This massive amount of money can be moved into Bitcoin or altcoins at any time. A lot of the money that was lost in Bitcoin, Ethereum, and other projects these past few weeks was simply moved into stablecoins to wait out the storm. A lot of that money is going back into the mainstream crypto markets already.
Stablecoins just make it easier to hop in and out of positions in other cryptos. While this increases volatility, it does not mean that when we see Bitcoin or Ether tanking that this money is being lost out of crypto altogether. Most of it is simply being put in a temporary holding until conditions are more desirable to buy (dips).
2. Headline News and the Psychology of Missing Out
I have talked to so many people who thought that they missed out on making any money on crypto. One man in particular, whose assets are worth a few million, said to me, “I wish that I had invested in Bitcoin a year ago.” Well, if this isn’t an obvious case of hindsight being 20-20, I don’t know what is. I spoke to him last week when crypto markets were diving, and he told me that once things stabilize, he is getting in. My hunch is that there are countless people out there like him. They missed earlier bull runs. They are on the sidelines watching with interest waiting on a good time to get in.
This is what CNBC’s Jim Cramer predicts when he said recently 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. You might say, who cares what Cramer says? Isn’t he all about stocks? Well, his program is among the most watched programs on CNBC and has been a favorite of non-professional investors for years. People listen to him and he does have insight. He is pretty bullish on crypto these days.
I think this chart illustrates very well what we are seeing with crypto right now:
3. Increasing Number of Applications Based on Crypto
This point deserves an article on its own. One need only look around the Publish0x site at any moment to see that this is true. A year ago, I feel like a person could have gotten a handle on all of the applications and platforms of altcoins. Now there are just too many to wrap your mind around. That is why we are going to be talking more about the Ethereum ecosystem in the future, rather than individual currencies. I discussed this in my last article:
The Future of Crypto (publish0x.com)
An example of this is the case study of Nigeria. Nigeria currently has the third largest crypto market in the world (behind the US and Russia). They are using cryptocurrency for border payments, credit loans, digital payments, and more. Nigerian youth see cryptocurrency as the new oil. Crypto has established itself as a very important part of the Nigerian economy. This pattern is repeating itself throughout the world.
https://www.benjamindada.com/four-interesting-applications-of-cryptocurrency-in-nigeria-now/
I think that these three points can help to calm the irrational fears that led to the sell-off. People get so illogical and emotional. Of course, I cannot say that I didn’t react as well. I transferred a lot of my holdings into DAI. Just this morning I began to transfer some of my assets back into Bitcoin and Algorand. I am hoping that Ether will pull back again. Regardless, the future looks strong for crypto in my non-professional, ever-desiring-to-learn-more opinion.
The Lynx
