The Final Crypto Winter?
The term "Crypto Winter" is something that has stuck with us for the last decade. It simply means a period of time in which the markets cool off and become rather stagnate. Not much going on trade wise, no real innovation in the sector and price movements non existent. It's happened three times in the course of a 10 year period and that term might soon be going out the window forever.
As of late the crypto industry has been getting hammered. At one point thought of not being much of anything has turned into a battle for the SEC and government. With that is coming more calls for clarity as companies and people involved with crypto lately have just been the target of court cases and fines with no real clarity.
However that seems to be changing and with that we could very well see the last crypto winter and in fact one of the biggest bull runs we have ever seen.
The Crackdown
Right now we are seeing a major crack down and while it affects some legitimate businesses like Coinbase and hurts small investors for the most part we are seeing the real crooks of the system drop. It's clear that the history of crypto has seen it's fair share of rug pulls, bad actors and people who simply cash in on illegal ways and then crash the system. While a vast majority of these people simply ran away with it all or started up their next scam. With these crackdowns we all feel it but we are also seeing many of these people start to get hit which is a good thing.
While it may not feel like it now these hits will make it harder for people to "get away with it" and instead start to second guess their actions. That doesn't mean it's going to stop and that doesn't mean you need to be stop being smart about your investments.
The World Economy
It's clear there are many shifts in the global economy at the moment. As much talk is happening about the USD no longer being the world currency it was going to happen at some point anyways. Coming out of world war two the reason the USD became a world currency everyone worked with was because it controlled over 70% of the markets. However that has drastically dropped to the point of lower than 50% which leads room now for there to be alternative methods. While BRICS is the spotlight crypto can also be in that mix.
It's clear that just about everyone now knows and hears about crypto on a constant basis. I often think back at my old job a few years back and how people thought I was crazy for investing 80% of my paycheck into crypto at that time. Well look whos laughing now...
We are seeing a vast majority of the population now owning and holding some form of crypto. Thus the adoption phase is now over and next will become the accumulation phase. For the most part people know and have some now it's stacking season for everyone. It can be looked at as a way to store value when the USD is looking weaker and weaker lately.
Industrialized
We haven't yet hit this phase yet. We have seen some start ups come of crypto and have seen what a huge boom that is to the crypto space. However until we get more clarity and rules in place where places are not randomly hit with fines and wells notices the startups are going to be slow to come and slow to grow. However that time seems to be ending here soon and with that we most likely will see a massive boom in the space much like we saw with the dot com era. Thus ushering in the last crypto winter as some speculate.
What are your thoughts? Is this the last crypto winter and is it already thawing out?