The perfect storm: COVID, Musk, DEFI, ETH 2.0 etc

4 65
Avatar for EnergyB0x
3 years ago

Preface

This brainstorming is perfect for all that crypto enthusiasts like me with few money and few cryptos inside the wallet. Anyone who wants to enter the crypto market now have to read more structured articles, I'm not your writer and these are not financial suggestions.

Many observers pointed out the timing of Satoshi Nakamoto BTC protocol publishing and first BTC release. Years 2008 and 2009 hosted the financial catastrophe which doubled the 1927 crisis and destroyed the faith in (structured) financial system.

But Satoshi Nakamoto, or whichever the name was, could never imagine what a COVID pandemics could do to economy, psyche and human behaviour. Billion people limited in movements, using compulsively digital assets to pay for food and other basic goods, remote job as the primary way to work and a big fear.

All these factors, and fear in particular, are a powerful propeller for "new things" to come out and explode. And if those "new things" are a widespread tech world where hundred thousands coders, cryptologists, philosophers and libertarians are working on since 2009 the explosion is simply a diffusion, so something more and more easy to take place.

What could generate a perfect storm, or better, what generated a perfect storm?

More geeks and more nerds

The world of cryptocurrencies was founded and followed by skilled men, very prepared in coding. Techies, and all the first wave of early adopters were techies. The movement received a big propulsion by millennials when hundred thousands of girls and guys, digital natives, found a smartphone in their pockets and started crowding all cool ideas they found in the web.

One day a damned virus obliged billion people inside their homes for a large part of the day, and this is situation we found:

  • they had to become someway techies in order to perform a good remote job;

  • more time to spend for digital passions;

  • a crypto landscape enriched with very useful, affordable and simple tools to enter for the first time, and above all to train and find informations perfect also for newbies (read.cash is one of this);

  • a recent Big Bull, between the end of 2017 and the beginning of 2018, that prepared the soil where generations of crypto enthusiasts emerged (my brother, my daughter, a friend of mine, a stricter net that inspired faith).

A larger base for a larger adoption. Everyone who knows that the number of BTC is limited, for example, also knows which is the effect of a larger adoption.

DEFI

I've never invested in DEFI because of high fees, but I followed projects since almost the beginning. In order to catch immediately the key point, DEFI are the decentralized financial infrastructure over decentralized currencies. Morever, DEFI can be unstoppable (if correctly designed). There are many projects that works in the market, and it is very probable that at least some of these will become so widely used, so successful and so well coded to be unstoppable. This is one of the aim of recent Bitcoin DEFI, but the same could be said for others.

In these days in India, a tech giant, the government is planning to propose a ban to all cryptocurrencies except for a new one under the control of the government itself. This is not the first attempt to stop crypto world and will not be the last, but if there are every day more and more alternatives that could grant to avoid bans, all the ecosystem becomes more trustful.

VIPs predictions

I will list here some predictions launched by very important business man. You could make more and better citations, please add yours in the comments below.

Raoul Pal, former Goldman Sachs, believes that 20k $ is a plausible evaluation for ETH.

Mike McGlone, Bloomberg, BTC could fly to 170k.

JP Morgan, BTC could hit 146k in the long term (this is soft).

The reason why I cited this 3 sources is these people studied cryptocurrencies for a long time. Meanwhile most of financial media are nowadays skeptics, for many reasons. I think that crypto world is so complex that you must, at least, know something about it.

Institutions are getting inside

As above, feel free to add your favourite citations.

Blackrock, the world's largest asset management, announced that it could invest in cryptocurrencies.

Jp Morgan, again, gave 3 reasons to add BTC to your asset portfolio (I have other 30 reasons, but I'm not an institution).

The website of NASDAQ reported a list of banks yet transformed in whales (december 2020) among which DBS Bank of Singapore, Swiss digital exchange SDX, Japanese bank SBI Holdings, Gazprombank, Spanish bank BBVA.

Paypal introduced in payment services the chance to buy cryptocurrency.

Above all rumors are rising about an Apple adoption of crypto currencies, and here the sinergy with homemade wallet could be huge.

Wallstreetbets

The rebound between crypto market and Wall Street is the prove that a bullish market can expand into others rapidly. The classic financial market was hit first by this wave, next will be all days economy? The path is so strict that WallStreetBets will only accelerate the involvement of banks inside crypto markets. In the case of WallStreetBets we had only a naked Main Street game, the hedge fund that continuosly bet on Gamestop crisis. What if next wave will be on goods, raw materials and related futures? It'll be a very big problem also for governments. So armies had to go inside the game.

L.O.V.E., sculpture of Maurizio Cattelan in front of Milan Stock Exchange

Elon Musk

Tweets about Dogecoin, Tesla 1.5 B$ in BTC, cars sold in charge of BTC, and so on. The wizard of (self) promotion did the best in few days, surfing the bull (that is easier) and rallying public opinion. The key point is that this self promoter, Elon Musk, is also the man that created a company called Space X, and many others. Space X launches an impressive number of rockets every year, and these rockets come back landing with no major damages and so they're reusable.

If someone wants to be a mooner, Musk is undoubtely the more trustable for newbies.

ETH 2.0

High fees are slowing the rise of DEFI and other Ethereum blockchain services?

I don't know, I'm not a blockchain expert, I love to get informations and nothing more. What I surely know in my personal experience is that high fees are a serious obstacle for small investors like me.

What we know about ETH 2.0 is that it could simplify operations on the blockchain and reduce fees. But above all that the launch of new version should happen in 2021. This is why I entitled this article the perfect storm, because there are so much timing synergies that it seems a herd of bulls all coming one after the other.

Telegram ICO

This is what I think about ICOs: if not scams this investment vehicles are for few people. I lost money, not so much but I lost sometimes participating in ICOs. I don't remember good investments, but may be this is only my problem.

Nonetheless Telegram:

  • is valued dozen billion dollars, experts esteemed in very different ways and with very different results;

  • is above any suspect about founders belief in strong privacy services and decentralization;

  • the raising vehicle will be a GRAM coin, and I think it'll not be a fast falling star (it has a strong value beside).

Therefore I'm not the best testimonial for an ICO, but honestly this appears as another stormy event (of course, in 2021). The last attempt of the company was not so lucky, but there are hypothesis of 2.5 B$ ICO here, they cannot fail.

Conclusions

Since I entered this fascinating world of crypto I always heard techies that recommend to focus above crypto and to give less importance to Main Street, and I perfectly agree. I invested few money, I earned less, but I love to read articles and learn about decentralization, crypto currencies and so on. A passion.

At the same time I think that when something become so widespread to involve Main Street, Second Street and a great part of streets we know, the game is changing. I don't know how, but if all these events come more or less together we could be in THE perfect storm.

If you are here, I'm the happiest man in the world.

Let'share this joy, follow me at https://noise.cash/u/EnergyB0x.

12
$ 0.43
$ 0.39 from @TheRandomRewarder
$ 0.03 from @lerkfrend
$ 0.01 from @portalgeographia
Sponsors of EnergyB0x
empty
empty
empty
Avatar for EnergyB0x
3 years ago

Comments

The storm is almost too perfect in a way but I guess it has to be in order for multiple aspects to line up and usher in a new chapter of finance.

$ 0.00
3 years ago

What will happen if crypto eolrd becomes too big to fill, to be stopped? i perfectly agree with you, another finance is another storm, but tornados always begin as tropical storms :-)

$ 0.00
3 years ago

hi

$ 0.00
3 years ago

I'm one of those that started a new income source through COVID, I'm a teacher and I started writing blogs, and door was opened through portfolio os posts on publish0x I applied and joined ambassadors team of Algorand Blockchain.

Now I'm about being hired on ZenGo Customer Support.

For me at least crypto market, DeFi and other stuff is being good.

I hope soon you'll be receiveing reward from rambom rewarded. Nice post man!

check mines also

$ 0.00
3 years ago