Today we want to analyze a long-awaited phenomenon by the crypto community that we think will never happen: a major crash like the one that happened in January 2018. We will now explain why we think it will be impossible to see such situations and what has changed in the crypto world in the last 3 years. Of course anything can happen and these are just our ideas, so feel free to have different thoughts or believe other ideologies or other traders (usually pessimistic until they see a 10k green candle on bitcoin 🙂 ).
Cryptocurrencies have gone mainstream
Unlike in December 2017, cryptocurrencies now have an audience at least 10 times bigger. But not only that! You can hear about bitcoin in any country in the world, even from very young people or people of advanced age. Thanks to big institutional investments, bitcoin is now compared to gold and every day new big companies decide to make big investments in BTC. Following them are of course millions of people who can now buy BTC by using their bank account or even PayPal, which in 2017 seemed only an impossible dream. There are also many crypto banks and crypto ATMs where it is possible to make very quick purchases and then withdraw from the same places or use crypto debit cards, which are now super numerous (thanks to MasterCard and Visa becoming very crypto friendly).
Many crypto projects generate sky-high profits
December 2017 had accustomed us to so many promises and whitepapers but we had not seen any results. In short, it was all hype. Now things have changed for the better and there are many products that are generating huge profits. For example there is Uniswap which with its 0.3% fee generates over $1 M in daily earnings. Then there is AAVE, Maker, Compound, YFI and many other projects that are earning a lot of money from fees and the use of the protocol itself. The other day I read that YFI generated more money in a few weeks of 2021 than in the whole of 2020. In short, the business is now real and there are many companies ready to explode. Considering that this is just the beginning, I don’t think it’s crazy to say that Uniswap, Aave and the like will make even 10 or 100 times more money in the years to come. Decentralized finance is becoming an explosive phenomenon that will give traditional banks a lot of trouble.
BTC is considered a real alternative to Gold
BTC is finally being considered as the real alternative to gold, as the supply is limited, the difficulty is very high and the market cap is through the roof. But not only that! Also Ethereum is now on everyone’s lips and the world has understood that this new blockchain and smart contract technology will soon become a reality that we will see every day. Lawyers, Notaries, Manufacturers and so on will increasingly use Ethereum and blockchain technology. And thanks to Ethereum we will see more and more interesting projects being born, hence new profits and new users all the time. There are also L2 solutions to scale the ETH network and pay very few fees, perhaps even using this currency for money transfers (at the moment it is not convenient because of the fees).
In short, crypto has evolved a lot and it seems that the right time has come to say that crypto is not a financial bubble but a very powerful technology that is certainly the world’s greatest invention since the world wide web era. Well done!