FOMO is setting in for bitcoin. We all know how this story goes. But if you don’t then let me show you. First come the news print of bitcoin reaching all time highs. Then the stories of the kid bitcoin millionaires who had the foresight to take that $1,000 bet.
Then the alts will follow suit as always. However, bitcoin will continue to roar lifting all boats. Hot money flows may push crypto to unseen heights. Of course bull markets make everyone look like geniuses. Just be very cautious of so called crypto experts who may be wolves in sheep clothing.
Let’s be aware of the bigger picture in crypto. Abundance is the name of the game; creating real value out of what many old timers see as being valueless. Intangibles and virtual assets will begin to take on a life of their own. And the valuations may seem to not make any sense.
I believe the NFT market is extremely overvalued. This will only be exacerbated by the ever increasing purchasing power of the rising crypto markets. I’ve been warning readers for quite some time. NFT’s that don’t produce anything will become worthless.
NFT’s tied to games that actually create a cash flow will be the true winners. If your NFT’s create tokens or perform a utility then congrats. These valuations will be able to sustain itself even in the midst of a run for the exits. While others will probably lose it all.
Wall Street’s acceptance of bitcoin is a sign of things to come. Although I’m not a fan of the legacy system and it’s distribution model modern banking is in desperate need of an upgrade. Many believe that all banks will become obsolete.
I have a different opinion. Banks create credit both secured and unsecured. Much of the back end work already exists. However, many banks can’t compete with defi yields. Zero percent interest doesn’t sound as sexy as 100 percent APR.
So, hypothetically speaking legacy banks may begin to embrace defi finance. Not to mention a multitude of stable coin creation ie Wells Coin Goldman Coin etc. Although this is nothing new the delivery of these products have not been forthcoming. This may change in the coming years.
Frankly, they will have no other choice. Crypto is going to eat the legacy system. Adapting to change will be the only way the system survives. Although many in crypto would much rather see the system disappear it’s probably not going to happen.
Instead, crypto will merge into the legacy system. This will not happen by choice but out of necessity. Many are realizing that blockchain can solve many of the issues society faces. It can also create value for all people without having to raise taxes on anyone.
No one likes taxes. Frankly, it’s only a subset of the population that pays the bulk of the debt burden. Wealthy people can use every loop hole in the book. Or transfer funds to other States or jurisdictions.
This cat and mouse game truly solves nothing. It’s also created a debt burden that will never be paid back. So instead of doing the same thing over again new ideas will be deployed. And regardless of the legacy system crypto will press forward.
Overall I’m very excited about the rise in cryptocurrency. It’s been a passion of mine since it’s inception. Through all the fits and falls it has been a great feeling to watch it all come together. The cool thing is that we are just getting started.
So I’m going to continue stacking Sats and my ETH. I’m currently still mining both ETH and BTC. I will also continue participating on Hive since its been a fun endeavor. Hopefully we will get some of that pricing action in the Hive ecosystem.
Our time will come. The question is wen??