I often hear and read about how people don’t want to invest into crypto because the price is too high. They have missed the boat. And they are worried that it will crash soon. At the end of the last big crypto bull market, the prices crashed hard and we saw a big retracement. Bitcoin, for the most part, went down about 50% where it stood for years. Other coins/tokens went down 90% or even more. So where are we now? Well that is irrelevant. Are we at the top? Are we at the middle of the bull market? No one really knows. Bitcoin could double in value this month or we could have a major world event that would send most investments crippling down. But, let’s assume you had bought bitcoin or whatever crypto coin back in 2017 near its all-time-high. Jump forward to 2021, if you had kept your crypto and not sold then you would be fairly well off right now. It is interesting to note that I have seen and even said that crypto was too expensive at times but it is important to look at the big picture.
When it comes to investments, I really like following Warran Buffet’s example and I like to buy and hold on investments that I believe in. Sometimes I do day trade and I am a big fan of yield farming but the underlying principle that I think you have to ask yourself is this. Do you think Crypto Currencies will become more wide-spread adopted going forward? And if the answer is yes, then what are the winners going forward? Do you think Bitcoin will still be around in 5 years, 10 years, 20 years? If so, then it will probably be higher in value. If it is just some fad that will go away then you would expect it to go down. What about Ethereum? Ethereum is a smart-contract network that people can build their own platforms off of. Most developers build off of Ethereum and, without going too much into the weeds for Ethereum, if you think it will be around for the long haul then you would expect a positive price action.
What about other crypto currencies? What about Dogecoin? Well that is a tricky one for me. Meme coins, generally speaking, are often just scams because it costs a couple hundred bucks to make a token on Ethereum or ten dollars on BSC. There is no development needed and as long as people believe in the MEME then it could go up in value but the token itself has little to no inherent value. However, Dogecoin is pretty popular. There are other memes that have survived the few years of time (I do own a small stash of BANANO which has gone up over the past month). However, personally I find these really high risk since there is no inherent value. For example, if the world dipped into a global recession, I would assume Dogecoin would get hit pretty hard. However, the more it becomes adopted, it could potentially survive off of it’s meme alone. It doesn’t make sense to me personally to use DOGE in lieu of a different token that is faster/cheaper and that offers more features, however, DOGE users have done a lot of marketing and the coin itself is very popular. Will DOGE be around in 10 years? I am leaning towards yes. However, I do not have a lot of money in DOGE personally because I find other projects more interesting.
What kind of things are possible with crypto currencies? There is quite a long long is things that crypto can accomplish but here are some popular considerations.
Privacy –Most crypto currencies don’t offer this but some specialize in transferring money decrypted without being able to trace where the money came from or where it is going.
Instant/feeless/trustless – There are a lot of cryptocurrencies that transfer within a couple seconds and are almost free or maybe even free. Big deal right? I mean you can transfer money on Cash app, or PayPal or Venmo, for free and instantly. Well there are a couple key differences with crypto. One, these companies have to make money somehow and more importantly they control your money. One time, PayPal decided that it didn’t like my login and wanted me to verify with my original phone number for the account. I made that account a decade and a half ago and there was no way I could use that number to verify my account. When talking to customer service (for a VERY long time), they told me my only solution was to make a new account. At the time, I lost a few hundred dollars but what if that was thousands of dollars? The nice thing about crypto is that you are in control of your money and some give you the same utility as these big name brand money apps.
NFTs are very popular in gaming and artwork right now. Basically, you can have ownership of a unique item, or art piece or something and the blockchain validates the ownership. This is pretty awesome because it is creating a new genre of gaming where it is play-to-earn rather than a paid-to-play model. I imagine in the future, we’ll see more music, games, and artwork within the NFT marketplace.
Governance protocols are validated by the blockchain. Many projects utilize this feature which basically makes the voting process trustless as well. The awesome part about this is that governance features can be as simple as fee management or overall scope of the project. I anticipate more and more projects will use governance and also we’ll see potentially businesses and even governments use some kind of blockchain governance protocol which if done properly is safe from manipulation and corruption.
My Personal Opinion
I think Crypto has a bright future. While I do enjoy making money in the short term, and I do love yield farming, Crypto is bringing more utility to the everyday person. Are we at an all time high right now? Yes on many projects. Will the crypto markets go up in the near future? No one really knows but I personally think that crypto markets will be higher in the future than they are today. The crypto industry as a whole is disrupting the financial system. Because of this, I am still buying more crypto and intend to continue to do so.
I know I haven’t posted in a while. I just got back home and I will be trying to post again regularly. The month of April had some crazy changes in the crypto space and so I am playing catchup still. Also, the project that I have been helping to collaborate on is coming closer to launch. If you are interested in a yield farming platform on Harmony network then checkout the discord channel to be involved!
ForeverHobbyist channel: https://discord.gg/mvdCMc2ceE