⚖️ Does Crypto have potential?

Contents:

• ⚖️ Does Crypto have potential?

• 🌙 When Moon (Factors to Consider)

• 👀 Under the Radar

• 📰 ICYMI

• 🙏🏻 Grateful for…

• 💸 Coupons

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⚖️ Does Crypto have potential?

Since Bitcoin’s ATH (all-time high) in November 2021, there has been a bloodbath in the market. BTC has lost more than 50% of its value since then, dropping from around $69k to as low as $33k, and Ethereum has decreased from $4,800 to $2,400.

After the recent sell off, Bitcoin’s market cap is sitting at around $1 trillion, and the entire crypto market dances around $1.65 trillion, which is a small fraction compared to other assets cap.

If we compare the cryptocurrency market cap with other markets and fortune 500 companies, we realized that there is still a lot of room for adoption.

For example:

• The gold’s market cap is approximately $11.7 trillion.

• The United States real estate market hovers around $200 trillion and, currently, to invest in real estate you need to either buy property or REITs. The former is expensive and a long bureaucratic process that benefits traditional financial institutions leaving many out of it, and the latter is not that exciting nor fully transparent.

• The US Bond Market is worth around $50 trillion, making it 50 times larger than todays BTC market cap.

And four the Top-5 companies by market cap are, today, larger than the entire crypto market.

🌙 When Moon (Factors to Consider)

• Regulation: As we have mentioned in prior installments of our newsletter, 2022 will be the year of crypto regulation. This is not entirely negative if we have intelligent and comprehensive regulation that does not stifle innovation while injecting confidence on those large traditional and conservative institutions that have not invested in crypto yet. In reality, Tesla and Microstrategy are the only large companies that have jumped all-in on crypto. There is a lot of room for institutional mass adoption at a global level, the right regulation will push this forward.

•  Lobbying - FTX.US, BinanceUS and Gemini jumped into US lobbying in recent months, yet they trail Coinbase’s $1 million quarterly spend. There will be lots of money “invested” in the attempt to fight for comprehensive favorable regulation.

• Taking other Assets cake: As we saw on the above stats and graphs, there is plenty of potential for crypto to grow. Just $1 trillion taking out of Gold and reinvested in crypto will double its market cap. Millenials and Gen Zers prefer to allocate their capital in crypto assets than in stocks and/or real estate. The investment migration will foster the growth of web3, NFTs, and the cryptoverse.

• DeFi: The DeFi world is still in its nascent state. As Ethereum L2, rollups, and other faster, frictionless, and cheaper protocols become reality, DeFi transactions and the way you can stack them like lego pieces will explode and enter traditional finance. A few years back, buying crypto was a cumbersome and boring process, now it’s a one-click affair. Today, DeFi can be pricey (gas fees are outrageous), difficult, and boring for the masses, but it will not be for long. Soon, DeFi transactions will also be a one-click affair as well and stacking multiple DeFi transactions in one-block to reap maximal financial rewards will also be streamlined.

• Metaverse: This trending technology has the potential to push crypto way above any imaginable prices since most of the metaverse transactions are being settled in crypto. But again, regulation will play a very important role in how fast and decentralized this technology evolves. Unfortunately, many investors and individuals are becoming a bit suspicious of the “metaverse” as it has become a buzz word. There are too many players attempting to profit from the hype by creating less interoperable and private platforms, which can slow down the adoption process.

• Tech Heads: The world and tech is changing too rapidly to even notice and advancing at blazing speeds. Youngsters can understand the power and financial potential of an NFT and the benefits of buying real estate in the metaverse quicker than my mother can launch the Uber app (❤️ Love you mom). Those with tech skills will win either by creating or investing.

• Gen Z: (10 - 25 years old, at the time of writing) are the ones driving this web3 adoption and they are doing so from their cell phones. They are not afraid to mint and monetize their art nor to invest in the NFT of their choice. They will invest their capital in crypto, not in the stock market. They will get paid in crypto and work for themselves or maybe work for a web3 or crypto company. They will visit museums, concerts, galleries, and shows in the metaverse.

To Summarize, there is a lot of potential in this space for any investor, regardless of how deep their pockets are. It’s definitely not too late and the ship has not sailed yet, It’s still being built. Crypto will continue to be volatile, but growth is inevitable as there is a lot of capital on the sidelines waiting to flood web3 projects and crypto markets.

👀 Under the Radar

• ECOMI (OMI) - Singapore-based tech company that created VeVe, a blockchain-based digital collectibles marketplace, for users to buy and share their collectibles across the social network service. It also has “ECOMI” a Secure Storage Wallet. VeVe contains the VeVe store, a second-hand market, an augmented reality showroom and a social feed.

• Compound DAI (cDAI) - allows you to earn compound interest by supplying assets such as crypto to its liquidity pool. The compound interest rates automatically adjust depending on the supply and demand of your respective asset. The collateral can be withdrawn or paid at any time, there is no lockdown period.

• ThetaFuel (TFUEL) powers on-chain operations like payments to relayers for sharing a video stream, or for deploying or interacting with smart contracts on the theta network. This is like “Gas” for the Theta protocol. Relayers earn TFUEL for every video stream they relay to other users on the network.

• Osmosis (OSMO) - Token of the Osmosis Hub, first Decentralized Exchange (DEX) for Inter-Blockchain Communication Protocol (IBC) which allows independent blockchains to directly communicate and trade assets.

📰 ICYMI

• IRS Called Cryptos And NFTs A Mountain Of Fraud

• Crypto advocates sound alarm on America COMPETES bill over new financial surveillance provisions

• FTX.US, BinanceUS and Gemini jumped into US lobbying in recent months, yet they trail Coinbase’s $1 million quarterly spend

• Several Factors Will Send One Ethereum Competitor to the Moon Over the Coming Months, According to Altcoin Daily

• SEC Rejects Fidelity’s ETF Application; Here’s Why

• SEC scrutinizing crypto lending by Celsius, Gemini, Voyager: reports

• Coinbase: Crypto future appears ‘brighter than it’s ever been’