The Great Consolidation Is Underway
With how bad things seem to be and all the drama going on in not only the crypto space but also the stock market and world economy it's actully something that happens and repeats itself over and over again.
While there are times when this happens quickly and a reset of everything only takes a year to a year and a half other times it can take many years. So far we are still in that lower end of a bear market reset but we are seeing a huge amount of consolidation in both good and bad ways.
From stable coins failing and testing how "stable" they actully are to FTX drama that is still unfolding along with massive buy outs. In fact one of the most recent ones is Binance.us acquiring a bankrupt crypto exchange voyager for 1 billion dollars.
Here's the crazy thing I think you have to be real stupid in order to run a business in crypto and go bankrupt. It literally prints money for you if you don't throw in some crazy over hyped APRs that are above the staking payouts. It's legit that easy yet for some reason these placed don't do it and try to come up with crazy APRs that attract people but crumble the business a few months down the road.
The Great Consolidation
What exactly is the great consolidation. It's a thing that happens during every bear market. The legitimate companies that stuck to their guns and didn't fall into over hyped up BS played the waiting game and are now gobbling up other businesses. In most cases these buy outs don't relaunch the business they just absorbed their customer base and fund into their own primary exchanges and business fronts. It's an awesome way to quickly build a business during the bear market for pennies on the dollar.
This consolidation happens pretty fast in the crypto world. For instance the last was during the end of 2017 to 2018 and only really lasted till the end of 2019 in which it the rallied to all new highs. The consolidation then was all the shiz tokens from Ethereum layer two tokens and just flat out scamming and poorly built projects. This took a while to filter through and took a major hit to markets but what we did have was a much higher new base line and I believe that's what we are seeing with this 16k baseline we have been holding for the last few months.
For the most part it seems like a lot of the FUD, legit bad news and the era of stable coins depegging should be coming to an end and because of that I see a rather low slow market for the next few months with a possible for the first bull market to kick in summer of 2023. However many speculate it could be until 2025. That gives us a one and a half year window of when the bull market is expected to start taking place and it's not all that far away when you think about market cycles.
*This article is for entertainment purposes only and is not financial advice.
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I still think it's possible for people to go bankrupt running a crypto business because the bear market is tough. If you don't have enough funds to cover the expenses, I think it will just go under.
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I love to enter stocks with long consolidation periods in the stock market, particularly the latter part. Usually, what follows is a huge spike. Never experience such in the crypto space. I wish it works the same.
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very interesting post. True, this year we have seen them all: the collapse of an entire ecosystem like TERRA, the depeg of stablecoin coins, the collapse of one of the most popular centralized exchanges. But after the storm the sun always comes, but maybe we'll have to wait a few years
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Hello @bitcoinflood thanks for your crypto information.
Yes the big banks don't like crypto and use a lot of FUD.
Barb
#thriveonhive
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