𝙏𝙤𝙤 𝙗𝙞𝙜 𝙩𝙤 𝙛𝙖𝙞𝙡… 𝙮𝙚𝙨 𝙤𝙧 𝙣𝙤?
The first time I ever bought some Bitcoin was back in late 2017, at around 16-17k USD. I was sitting on that trading floor in Hong Kong and all my colleagues thought I was a loser for jumping in so late in the game, and they were right… for the most part! It did fall back down quickly after, and the fall was very hard to watch for me to be honest. It was a slow and steady fall during 2018 to the 3-4k range! What I did then was open positions in coins like Ethereum , Ripple $XRP and even Tron $TRX. I remember that day like it was yesterday, telling myself, I will buy those and completely forget about them for at least 5 years… Fast forward to 3 years later (2 more to go…)! Bitcoin… Well, not such a loser after all, with the price rising through the roofs lately, reaching unprecedented levels. Back then, FOMO was a big reason for many people to buy. Today, there are many many many better reasons to buy crypto, and BTC in particular. I will not list all the reasons that you all can read every day online. To me, there is 𝙖 𝙘𝙡𝙚𝙖𝙧 𝙙𝙚𝙢𝙤𝙘𝙧𝙖𝙩𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙙 𝙡𝙚𝙜𝙞𝙩𝙞𝙢𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝘽𝙏𝘾, with moms & pops throwing some cash at it via easy online platforms; with wannabe young traders who want to be part of the wave (the other day my friend told me the story of his nephew who asked his dad to quit college and invest the remaining part of his tuition fees into crypto.. his dad let him, that was 2 years ago….! How crazy is that, I thought). Funds are opening up and allocation into crypto is just part of the game now. Banks are investing, professionals are investing, companies are investing their spare cash! Some companies accept btc as method of payments and transactions, others will follow. Governments have little choice but to start and accept what’s going on in this world. That basically sums it up. A LOT of people have ‘resisted’, skeptics, calling it a bubble and all. Now, whether you think it is too late or not, you just can’t just watch it from afar anymore. Volatility remains high, and speculators are still present, but crypto is only going one way when it comes to accepting it and using it. Simply look at the Coinbase IPO headlines and craziness to understand what I mean… But that’s an entirely other subject on its own! So here is what I think is happening: Everyone is jumping into btc. Could be FOMO, could be a wider international adoption, could be easier access to it, or simply the love of the technology and maths behind it. As more and more buy, more and more talk too! Media is all over it. Tell me you have spent one day in the last 6-12 months when crypto was not in the first page of big media companies, I won’t believe you! At the same time, we went through a crazy 2020, when we saw markets tumble then properly take off. That meant more new investors, opening up trading accounts all over the world to be part of that madness, on all those different platforms, which ALL offered easy access to crypto. So more people talked about it, again! On top of all that, the chaos around markets at the start of last year, with rates falling to zero (or close), crypto has become a ‘value’, ‘safer’ investment… 10k..20k..back to 15k..then boom, 25, 35, 50, 60!!!! Where does it stop? How big can it become? Is it too high? Too much leverage? Too much speculation? I think we continue higher, and investors won’t stop until we see it trading at 100k. I know this is not a proper fundamental analysis, but sometimes, you don’t need to look deeper than what you can see if you ask me. On top of that, as the crypto world is booming, some use profits in BTC to fuel rallies in other coins, and diversify their crypto books by owning other ‘quality’ coins. Obvious ones are ETHEREUM, but lately, we see the awakening of ADA, XRP, or even TRX. All have their fundamental power independently too. As more and more people out there are being aware of the power of crypto, and getting educated on all the different coins, the total market cap of that asset class keeps on growing steadily. There will always be skeptics out there, but if you ask me, buying in now is still relatively early in the big scheme of things. And what I wonder now is, has crypto – that digital gold – simply become too big to fail? When you start seeing big institutional names like GS, Blackrock, Tesla, Paypal, Twitter etc push crypto to the world, can it actually disappear or even come back down from where it is now? What do you guys think?
Thanks for reading & Happy Trading
Editor: Thanks for sharing your thoughts, Ufuk! I think digital currencies are definitely here to stay. I think the key to mass adoption is going to be stability in values. Right now the prices on crypto can still fluctuate a lot more significantly than your normal fiat currency used by countries. However, I think the more frequently cryptocurrencies are used in commerce, the more stability there will be. I’m curious to know how many nerds out there would prefer to pay for their nerd swag using cryptocurrency and if that’s something I should be looking into for our store. If you thought Ufuk was a cool guy and want to read more of his stuff, you can do so on eTOro.