Here is why crypto will take off and not turn back from this point

By BBAMarketPerspectives | The Brave New After-World of Bitcoin | 7 Jul 2021

“This time it is different.”

Many old-time fund managers will laugh at this comment because they know its origins. They know that when people start saying that, it is time to perhaps pull the money and run from the market. The peak is here anyway and there is only so much more the market can go before it collapses, is the norm of the day. The warnings keep going louder and louder and it has been going on for the longest time that no one bothers to keep track any longer.

Is it really true? Are we at new heights and a peak that the only other way to go is down?

Year after year, the S&P500 has kept growing. This is its index over a 90 year period. (https://www.macrotrends.net/2324/sp-500-historical-chart-data)

S&P500 - 90 year chart

This is the 10 year chart

S&P 10 year chart

The S&P500 is basically a basket of stocks comprising large cap businesses. This composition of this basket changes as the criteria that the 500 companies have to meet will eventually cause them to fall out due to lack of competitiveness, changes in business climate, etc.

We are probably familiar with this. And perhaps also the reason why the Reddit comment these days have been “STONKS ONLY GO UP”.

Mind you, the first chart of the 90 years comprises a huge time period BEFORE all the Quantitative Easing that the Federal Reserve has been engaged in.

So what has this got to do with crypto, if anything?

what the heck

Crypto is no longer an enigmatic thing.

It has been accepted to be here to stay. And its development is phenomenal. Soon, we will no longer be talking about Web 2.0 or even Google search for that matter. All data will be made available on the blockchain for Web 3.0. Transparent, clearly auditable.

A lot of legacy rent-seeking businesses are getting too big for their own good, including the current FAANG tech companies and banks. Their current CEOs and Board of Directors are probably not concerned at this juncture on how disintermediation will hollow them out. Some are making adjustments. Others are still figuring out how not to get eaten. But if you were to go to one of the blockchains, Solana, and take a look at the number of DeFi projects on them, you should be staring at your screen, wide-eyed, jaw-dropped. And if you are on a bank’s board of directors or a senior leader of a financial institution or even the big tech firms, you should be concerned. Very concerned indeed. By the way, to add to the fire, Solana is not the only blockchain offering DeFi!

staking

Yes, a number of them will be rug-pulls, a number of them will fail because they lack prudence not just in finances but in judgment with regards to their algorithmic coding, etc. But there will be those that will start to shine. The gems, if you would. Those will rise to the surface and attract bigger investment dollars whilst creating a great decentralised yet magnetic effect. Gravitating customers rewarded for participating. Who does not like that? Dismal interest rates for savings in the bank? No worries, if your crypto is staked. 14% for Zilliqa, I last heard. 5% for Ethereum.

And the best part of all is this. The banks themselves are recognising and giving crypto credit.

Goldman Sachs has not only recognized Ethereum as an investment asset, it has also bought into the narrative of its flippening on Bitcoin!

https://thecoinshark.net/fintech-news/goldman-sachs-recognises-crypto-as-an-investment-asset

https://bitcoinist.com/goldman-sachs-believes-ethereum-beats-bitcoin/

Mind you, these are not folks shouting “Moon!” without any research backing. These are brilliant minds with analyst teams backing up research to see inflows and utility, real world use cases and projects across the crypto world. And they know where the money will go to if the traction keeps up.

If I were you, I will not stand on the sidelines and watch H2 2021. Because like the soccer match, the second half is usually going to be the deciding factor on whether you will stay lagged or moon up.

to the moon