Seems like a lot of people are losing conviction in crypto after this bloody day and their 2018 PTSD triggers are being recalled.
Time for a thread to explain my reasoning as to why IT IS different this time and a bear market is unlikely to repeat, supercycle is not a meme 👇
Time for a thread to explain my reasoning as to why IT IS different this time and a bear market is unlikely to repeat, supercycle is not a meme 👇
Lets take a step back and reflect on 2018, what use cases were there in crypto and what caused the bear market?
Sending transactions was the primary use case of all the coins/tokens at the time. People were competing on creating instant transactions + low fees, $NANO and $OMG.
Sending transactions was the primary use case of all the coins/tokens at the time. People were competing on creating instant transactions + low fees, $NANO and $OMG.
Borrowing USD as collateral with your assets is a strong factor as to why the housing market has been on a rapid bull run since the 2008 recession.
Why would you sell your appreciating assets to unlock its liquidity when you can simply refinance/pull out the equity?
Why would you sell your appreciating assets to unlock its liquidity when you can simply refinance/pull out the equity?
We are seeing the same trend happening in crypto now. The amount of $ETH staked/locked in DeFi platforms reduces the sell pressure by a ridiculous amount.
On-chain analysis mostly is cope imo, but the retention that DeFi has for users is higher than most people are aware of.
On-chain analysis mostly is cope imo, but the retention that DeFi has for users is higher than most people are aware of.
It is extremely rare to find someone who has experimented with DeFi, then using a traditional bank afterwards and not feel like it is very outdated.
Banks simply can't compete and their stock prices vs $ETH are a direct reflection of this.
The free market is the referee.
Banks simply can't compete and their stock prices vs $ETH are a direct reflection of this.
The free market is the referee.
Exploring DeFi further, liquidity pools on @Uniswap, @SushiSwap, @CurveFinance and other AMM-based DEXes absorb selling pressure at rates that weren't previously possible in 2018.
The LPers lose money due to IL, however the incentives are strong enough for them to remain open.
The LPers lose money due to IL, however the incentives are strong enough for them to remain open.
The amount of traditional funds that have caught onto our Ponzi and finally realised it's not actually scam is something to keep in mind as well.
$BTC at $65k? Not an appealing buy.
Oh $BTC is now at $40k?
It's a lot more interesting now.
$BTC at $65k? Not an appealing buy.
Oh $BTC is now at $40k?
It's a lot more interesting now.
There is a strong trend right now with fund managers to have at least a single digit % allocation into crypto.
Those that haven't caught on yet,, have money on the sidelines waiting to enter.
As we keep dipping, they will be more likely to enter our ecosystem.
Those that haven't caught on yet,, have money on the sidelines waiting to enter.
As we keep dipping, they will be more likely to enter our ecosystem.
Volatility in crypto can be seen as high, however if you reflect back on 2018 there was nowhere near the amount of money as there is now.
More money in crypto = less volatility = less severe down/upturns.
More money in crypto = less volatility = less severe down/upturns.
In conclusion, all these factors that I listed don't even consider the inflationary macro situation rabbit hole, feel free to go down that yourself.
The richest people are always the ones who hold onto their assets and never sell.
Low leverage long $BTC and $ETH and walk away.
The richest people are always the ones who hold onto their assets and never sell.
Low leverage long $BTC and $ETH and walk away.
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