2/14 ANDY HOFFMAN (CryptoGoldCentral.com): Bitcoin/Crypto’s Volatile History…And Ultra-Bright Future
Yesterday, the “Bomb Cyclone” storm struck the Denver area – yielding a scary mix of snow, ice, rain, and 40 mph winds. Fortunately, my family was home – as was 90% of the metro area. During the day, I wrote an article about why crypto WILL succeed – channeling my old, sound money roots, and new, futuristic technology focus.
Subsequently, I asked my wife here view on crypto’s future – given that generally speaking, she has little interest in such topics. Her response validated all I have considered, emboldening my view that it’s not a matter of IF, but WHEN a new, far more powerful – and world-changing – crypto bull commences.
To start, the topic of INERTIA I spoke of last week, when discussing the comical disparity between the valuations of completely useless, but seasoned “competitors” the amazing, but newly-traded BRhodium still sees.
In the case of Bitcoin – and crypto in general – the inertia is from a fiat-currency-dominated world that despite increasing concerns, still flocks to bellwether “money” like the dollar in times of crisis. To that end, I actually hold more dollars than at any time in my life – in large part, because I believe the only sound money alternative the world has had, Precious Metals, are permanently dead. The reasons being, years of anti-PM propaganda, paper market dilution, and that even in its nascent state, Bitcoin is rapidly being recognized as FAR superior to gold; let alone, LOL, silver.
Regarding the current, eerie state of the crypto markets – which appear to be in neither bear nor bull phases, we are clearly in the aftermath of the second major boom/bust cycle in five years. Only this time, it was MUCH bigger - involving much bigger losses; and thus, a much higher level of uncertainty, that has yet to be shaken off.
However, unlike the “wall of worry” Bitcoin climbed in 2017 – in rising twentyfold, whilst enduring crisis after harrowing crisis (the scaling debate, BCash fork, ETF disapproval, BTC-e scandal, Chinese ban, etc), there are no similar worries today. BTC’s hash rate is MUCH higher than 2017; all “competitive” forks have failed – from BCash to SV, and all others; and not only did the Chinese back down, but not a single government appears to have a material interest in stopping an entity they are increasingly understanding to be unstoppable…and perhaps, useful.
The way I see it, the only “issue” with crypto at the moment is the lack of speculators – which frankly, have left essentially all asset classes amidst an uncertain economic global environment. And in crypto, the increasingly obvious questions about how “dominant” Bitcoin will actually be, given that it’s market cap dominance has failed to advance one iota amidst the most horrific crypto bear yet. In other words, small potatoes issues, compared to what the nascent versions of 2014 and 2017 dealt with.
To conclude, I believe crypto’s future is brighter than ever – with the current market uncertainty reflective of issues entirely short-term in nature…though of course, there’s no way of knowing HOW short-term that will be.