One of the most over-used phrases in all of business likely rings true in crypto currently.
Citing one of the most famous lines used in business today, first uttered publicly by the famous Wayne Gretzky, one could easily apply that to the current crypto investing atmosphere.
Gretzky said he first heard that phrase from his father telling him that in order to be successful in hockey he needed to anticipate where the puck was going to go next, not just skate to where it already was.
In crypto there may never be a time when that is more true.
The tough part is, of course, knowing where that puck will go next.
(Source: https://www.azquotes.com/quote/117311)
Where does the puck go next?
As we sit near the 10 month anniversary of the crypto market cap peaking, we are left wondering where the best place to put our money is going forward.
If we were to pick the next bitcoin from here, we would undoubtedly end up very wealthy.
The question is though, what is the next bitcoin?
From where I am sitting, I am thinking that the next bitcoin might actually be the old bitcoin.
Why do I think that?
You see, at the current moment in time, bitcoin and the cryptocurrency markets are suffering from a lack of demand.
There are a whole host of reasons for that, which I won't get into here, but know that just about every single one of them is slowly being worked out over these past 10 months.
Eventually all the reasons not to buy bitcoin and crypto will start to be smaller than the reason to buy bitcoin and crypto.
In order to predict where to put our money, we should contemplate where the next wave of money is likely to come from...
Is it going to come from retail traders? From governments? From hedge funds? From institutions? From countries experiencing currency problems? Or, something completely unforeseen?
My guess is that it might be some combination of all of the above.
However, there is one in particular that really stands out to me, and that is the institution category.
Institutions would be things like pension funds, endowments, mutual funds, insurance companies, etc.
Basically, they are large pools of money that often move on investments as one giant herd.
According to just about everything I have read there is just about none of this kind of money in crypto markets currently.
However, that is all about to change.
We have had custody solutions pop up, we have had insurance offered on holdings, we have had new and easier ways to purchase continue to pop up, we have gotten some clarity from regulators along with a whole host of other developments that will ultimately help usher that money in.
Don't believe me?
Looks like Yale is already dipping their toes in via their endowment:
https://www.ccn.com/yale-university-has-invested-in-two-cryptocurrency-funds-report/
(By the way this is absolutely huge news that the markets are mostly ignoring currently. Don't make the same mistake.)
(Source: https://www.ccn.com/yale-university-has-invested-in-two-cryptocurrency-funds-report/)
Ok, so now that we know institutions are coming, how do we play it?
According to everything I am hearing and have read, institutions will most likely be purchasing bitcoin over anything else.
Over time they may branch out to other investments, but at first it will be all bitcoin.
Which means, if the next large influx of cash that comes in is likely going to focus on a particular coin, what do you think happens to said coin?
That's right, it likely goes significantly higher.
Therefore, my thinking is that if institutions are going to be the next influx of money, bitcoin is likely going to be the biggest beneficiary, at least first.
Which means, owning bitcoin right now is probably a good idea.
That being said, in the past, any time bitcoin has run, altcoins eventually followed suit and went up an even greater percentage.
Which means, the play might be to ride bitcoin up, then cycle out into some altcoins after that happens to ride their wave up as well.
Keep in mind that this isn't investment advice, just the thoughts of one lowly crypto blogger.
Stay informed my friends.
Image Source:
https://www.influencive.com/what-is-the-future-of-bitcoin-are-we-seeing-a-transition-of-power/
Follow me: @jrcornel
Your so right probably. But it's so hard for me to let go coins that I like very much. I might have to meditate this... But yeah, I know I'd feel more comfortable holding a bit more btc this days...
Which are they?
Who knows?
Part of the money channeled to trade digital currencies may be used to short Bitcoin or others or to buy currencies other than Bitcoin which is obsolete.
Why pay these high fees to fund waste of energy?
Due to Bitcoin's high fees on top of the fees that exchanges charge in order to commit a trade, it is not enough for Bitcoin to rise in order for a new buyer to profit, it has to rise quite a lot, and any rise is not guaranteed.
I am not against distributed digital currencies, I am only against most of them, including Bitcoin.
This comment has received a 56.18 % upvote from @steemdiffuser thanks to: @stimialiti.
Bids above 0.05 SBD may get additional upvotes from our trail members.
Get Upvotes, Join Our Trail, or Delegate Some SP
You got a 37.42% upvote from @sleeplesswhale courtesy of @stimialiti!
They may increase as value as well if bitcoin were to take off, so I wouldn't be in too much of a hurry to dump them all, depending on what they are. Some exposure to bitcoin would likely be good though.
Totally agree with your assessment as bitcoin has a limited supply of which the herd will have difficulty getting into easily (and cheaply) when the floodgates open. As the mining of bitcoin continue to produce less of the asset and demand increases, the price should rise.
Correct, also the next halving is "only" 19 months away. Which prices tend to run up several months before those take place.
Gretzky should be a spokesperson for Bitcoin
👍🤑👍
Actually... that is not a bad idea. Any idea how to reach him?! Perhaps he will see a steemit post if I spread it around enough ;)
I believe these funds are going to be looking at utility. There's only a certain amount of people that believe the store of value narrative w/o utility first (actually use beyond speculation).
Gold store's value very well but not transportable.
I believe certain stable coins have a better chance going mainstream than BTC. Not tether...hehe. Some others that have decentralized and provable collateral. The smart contracts platforms like ETH could see the highest rise in prices b/c of the utility (what they power & enable).
Coins that become P2P Cash, used in developing world first have a great chance at massive value appreciation.
For Bitcoin to succeed in the way people want it to some fundamental changes would need to happen to core protocol.
I don't that happening but I am not bearish on BTC b/c of the name recognition. I am just more bullish on use cases.
I think we are talking about two different things here. I think bitcoin will gain investment initially as a store of value and not much else. The reason an endowment or pension fund would buy it would be the same reason they would buy gold... they want to own something that isn't correlated with other investments. Bitcoin right now is one of the best uncorrelated assets on the planet. There have already been models showing that the perfect risk adjusted portfolio has 4-6% exposure to bitcoin. That percentage can be increased or decreased as it relates to risk preferences, but it needs to be included for sure.
However... like you alluded to, over time there may be other coins that have more potential utility than just a store of value and those will certainly attract investment as they become apparent. Until then though, bitcoin will capture the lion's share of new institutional money.
Asset managers would be foolish not to have at some Crypto. You are probably right they'll add Bitcoin first or at least some of their portfolio even if fees are high and merchants are not adding. I used Cryptos weekly so for me BTC does not work anymore but I guess for people that believe in the SOV thesis it makes sense until it does not.
Yes, maybe you are right, two currencies will continue to run slowly, but it can be one of the precautions to make decisions and everyone must see how they crawl. hi @jrcornel you might like to see small colored animals in my place. regards.
I think once financial institutions realize how risky holding physical crypto really is they will look for better custodial solutions. Not trying to shill EOS but it seems to be one of the safer options considering you can reverse stolen funds and send money to account names rather than long complicated addresses.
I think they already realize that, which is exactly why they haven't been buying it yet. People managing these funds are often some of the smartest in the world.