Many people have lost their faith in the crypto market this month. A lot of investors panic sold the crash and it’s possible some of these people could never return to the crypto scene. While at the moment it seems like it’s the end, it’s important to understand why crypto isn’t going away. In this article today, we are going to discuss the reasons why there is still a lot of reasons to be bullish in crypto.
Bitcoin as a hedge against gold
In a recent video by popular crypto YouTuber Lark Davis, says that Bitcoin is going to continue to be a gold alternative.
“I still believe that Bitcoin is going to be challenging the market cap of gold as a store of value in the coming years. Bitcoin is a gold 2.0 asset. Over time we are going to see Bitcoin challening a ten trillion dollar market cap.”
Lark said that this means Bitcoin could still grow to be fifteen to twenty times as big as it is now in the long term future.
Investors with big money are still coming in
Kevin O’Leary – he is billionaire, investor and known from the TV show Shark Tank – still believes in crypto, especially DeFi.
O’Leary said recently on a podcast:
“What interests me the most right now is DeFi.”
The host of the show said:
And as the host said that once you go from fiat to crypto, there is no going back, O’Leary responded:
“I don’t want to go back. Why would I?”
To hear this from one of the most intelligent businessmen in the world today is shocking. While O’Leary has been critical of Bitcoin and crypto in the past it seems he’s turning around. Back at the beginning of the year he said:
“I can’t get consistency with any single regulator in endorsing bitcoin for me to do a significant transaction. It’s getting better, but it’s not something every regulator in every market supports.”
What is interesting about big investors like O’Leary and Mark Cuban is that they validate the breakthrough technology of blockchain to the public. Most don’t understand how significant DeFi and blockchain are. They see Dogecoin and think all other cryptos are just like – meaning that there is no value proposition. But public figures such a O’Leary are waking up the public to the utility of blockchain and DeFi. This can change the perspective of many businesses and investors in the long term as especially older and more conservative investors have been critical of cryptocurrencies.
The fact that more conservative investors such as O’Leary are starting to believe in the value of cryptocurrencies is showing that a shift is happening. And who knows, maybe Warren Buffet will change his mind someday as well.
Everything changes on a daily basis
Sometimes on a bad day, the best thing one can do is to walk away and not look at the market. As Rekt Capital points out here, on bad days most people panic and say that crypto is headed for a multi-year bear market. But in one single day everyone’s sentiments can change. All it takes is Bitcoin to stay above support levels and gain momentum and people seem less worried.
The important thing to recognize is that last week is not the first time the market has crashed. It happened in 2013 and it happened in 2017. And if you zoom out and see how much the industry has grown since these times, it is astounding. After the historic crash in 2017 many investors thought it was all over. But that crash lead to the greatest growth the industry had ever seen. The market has changed so much and there are so many incredible innoavations that have been made in the last three years. If history is going to repeat itself, we can expect more innovations and industry growth in the coming years.
This article is not financial advice. Please do your own research before purchasing cryptocurrency.
If you liked this article you might also like: What is a super cycle and can we see one?
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.