In discussing with peers about off and on ramps to crypto, the topic invariably turned toward USDC, USDT and even PAXG. Then of course like many the conversation veered toward a much deeper topic... Was it a Looking Glass or Cloudy Lens on BTC, XRP & Tether?
The Current State of Affairs
There's often a false sense of security when things are booming around us. For many, we constantly look to protect ourselves from harm or more simply said; we seek pleasure and look to avoid pain.
So when we apply this thinking to cryptocurrency and what has been happening since the last BTC halving event in May of 2020, that constant state of assessment is in place. You may find yourself asking questions incessantly?
What will the XRP / SEC situation affect me?
Will the U.S. election impact me?
How does a global pandemic look 12 months from now for me?
Surely these are just a few questions that are floating around in the ether, but none as important as what is happening right now, today, at this very moment.
I heard from a colleague who had 5x'd his portfolio from March of 2020 until today by doing nothing and just having entered a few unique positions that resonated. Small cap projects that were by most accounts unknown.
Granted, he could have done the same thing with BTC and been in about the same position.
Either way, it could be argued that there is an expectation that the "melt your face off" type of altcoin season has yet to take hold. Not exactly sure where that term came from, but it definitely has a way of making a point.
Also, there is a potentiality to already be talking about the end even before the start. Planning the exit or a grouping of exits is never far from an investors mind. Frankly, making an entry without even a rudimentary plan for exit can be chilling at best.
Recently, I came across a tweet, a Medium article and a youtube video from 3 different sources on the same topic and it has me thinking about what could actually happen during the lead up to the 2024 BTC halving event.
The Long Knives Are Out for Tether
Having little to know operational knowledge about Tether, the combination of three different sources caught my attention. In addition, while chatting with some friends, the topic came up and one in particular said that Tether (USDT) was not an option period & that USDC was the clear choice.
Like many would think you just move on from a conversation like this as there are so many other things to think about in the world. Nevertheless the conversation resonated for whatever reason.
So then just the other day the tweet from @HammerToe shows up highlighting an article with a very damning sentence on Tether and what it's doing to the over all crypto market.
https://twitter.com/HammerToe/status/1350047714608869376?s=20
Before going into the article, it's poignant to show that a very thoughtful response was given in a string of comments to this posting;
https://twitter.com/HammerToe/status/1350752811424870404?s=20
The comment string goes on to 13 with a few follow-ons as well, but you get the drift. There's definitely another perspective.
So here's a link to the article that has set all of this off. Much to say, much to do, but take a moment and peruse the prose at hand.
https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
It's really an individual's description of the journey of procuring BTC and going through the maturations of when to sell and learning what the market signs and tells are.
One of the more shocking tells of the entire article was looking at when USDT was flooded into the market followed by BTC spikes. You can see the correlation between BTC and USDT.
One graph by itself does not do any topic complete justice but begins to tell a story.
Next to come across was the Bearish Bull. Personally this author had never seen this personality before, but the video sheds more info on the subject and creates an otherwise deeper and more complex problem and how to actually address it.
So what's the moral of this story? For the average "Bob" as described in the article which is also referenced in the video, there is risk.
But there is always risk you might say... That is true, but the risk is that expectations of the retail as well as the institutional investor may not align with the reality of what is happening behind the seens.
This may also add up to some of the "funny business" that Christine Lagarde from the International Monetary Fund has been alluding to as I described in one of my previous more recent articles.
Either way, the moving parts are many and the amount of participants in the crypto space is growing rapidly.
Where to from here?
While there may be warnings from XRP, authors and others about the state of affairs in the financial systems at a global scale, it sure seems that in the short term the opportunity has never been better for this who are engaged.
In one last piece of content to connect you with, recently Ivan and Ben had a conversation about their current businesses, life in crypto and what they are both seeing coming in the near term. This is a relatively new piece just a couple days old but there is some sage advice which resonates & hoping you receive it.
The most important nugget this author took away from the conversation was the symmetrical time frames around bull and bear markets in relation to the BTC halving events. If you take a moment to check out this conversation I have no doubt you will come away with a new perspective on at least one item.
This is one of those moments where I will borrow some vernacular from Ben's Bitboy show.
Hoping this article is adding value to your day and making the best decisions possible, until next time BryRi out.
Thanks for the info