It seems as though each time Bitcoin slips from its highs, the media is ready to write off the entire $2 trillion crypto market, as if the big players behind it, would just throw their billions in Bitcoin investments into the garbage.
The technology behind crypto is getting better every day. A dip in prices just makes things even more attractive. For all the investors who believed they missed the run to new highs, there is another opportunity to get back in.
There are “experts” who believe that the Fed’s expected interest rate hikes will mark a new era for crypto. As rates rise, the amount of money going into speculative assets will fall. Consequently, with any rate hike crypto should suffer. But what do we expect? As the Federal Reserve raises rates from near 0 to just above zero, all of that speculation won’t go away. And yet a lot of investors are acting as if it will. We won’t see rates suddenly rise back to “normal”. Normal disappeared and is history. The financial system would crack, if we will go anywhere near normal.
Smart contracts allow real estate to be bought and sold at much lower cost. NFTs are unique to our homes, cars and other valuables. Stocks can be traded like tokens. Any business has a process that would be improved by moving it to the blockchain. And this makes crypto exciting.
It will all happen for the right reasons and not due to artificial money printing by the Fed. If you thought the market was overheated when Bitcoin was at $67,000, may be this current valuation around 40,000 is a lot more attractive to you. It definitely is!
Sven Franssen