By now, either yourself or someone close to you has invested money into one or more cryptocurrency assets. The question on everyone’s mind now, while holding on for dear life, is, “what is going to happen now?”
Cryptocurrency started grabbing headlines from major publications in 2020 after Reddit subscribers over at WallstreetBets executed a short squeeze on GameStop. In a matter of weeks, GameStop gamblers had an influx of capital and were eager to make more. On January 12th GME was trading at $19.95; two weeks later, it traded at $347.51.
Millionaires were made.
These Reddit retail investors then set their eyes on crypto, which was not as outlandish as the GameStop squeeze. Bitcoin has been making millionaires long before GameStop ever did. The retail investors hot off of GME made their appearance into the crypto sphere at the beginning of February, when BTC was trading at 〜38K and jumped up to 〜46k. Another helping catalyst on February 8th, Tesla announced they would be accepting BTC as payment for their cars.
Thus started the crypto bull run of 2021. In April, holders of a joke meme coin called DOGE coin had a run that they will never forget. April 12th, the coin was trading at $.07. In less than a month, DOGE hit an all-time high of $.73 on May 7th. A few more millionaires were made in this crypto boom.
One major shift in crypto that is right around the corner is that people will start using it. One of the world’s largest cryptocurrency exchanges, Coinbase, is now offering its clients a crypto visa debit card that allows them to spend crypto anywhere visa debit is accepted.
Now that people are gaming with crypto assets, I think it’s fair to say that crypto is here to stay. Individuals have become confident in the volatile crypto market, likely because they have been holding for years or because of the widespread adoption of digital assets. Confidence is so high that people are even betting with their crypto assets; online gaming and gambling platforms such as casino NetBet accept deposits from certain crypto accounts.
It took centuries to explain to non-literate societies the concept of coins and jewels as an exchange for goods and services. How could this coin be worth five chickens? Even still, this is a difficult concept to grasp. We should probably turn to the experts when it comes to understanding the value of crypto assets.
Recently institutional investors have been acquiring Bitcoin, XRP and Etherium; this is because more accredited investors want crypto. Hedge funds and VCs allow their wealthy clients the chance to get into crypto without having to accept the risks that come along. This institutional adoption is what will send prices higher during the next crypto bull run.
Few people in the US and throughout the world understand or hold cryptocurrencies; this means the room for growth is massive. Many catalysts are waiting around the corner, and the technology is not going to stop. Therefore new use cases will continue to open up for holders. If large institutions are getting on this rollercoaster, should you not get on as well?