Thread by @alpha_pls

1/ What next for the crypto markets? And what should you be doing?

Here are some thoughts👇

2/ Let’s first off start by saying: no one fucking knows anything about the short term.

3/ I think you have valid bull and the bear arguments with the crypto markets and broader markets right now, as we are at a point where there is much uncertainty.

4/ The bearish case lies in the fact that we have a record, potentially over extended, stock market in the US, and since march 2020 many cryptos have already achieved a 50-100x.

5/ What goes up must come down and all markets have corrective phases.

6/ The world is still shaky, in many countries the economies are being held together by celo tape and pritt-stick.

7/ Covid is still causing havoc with fear around a new variant. This is still affecting economies and their ability to bounce back.

8/ The crypto market sits at 2.5T and that looks like an extremely big rise from where it was 18 months ago, which will naturally make people who have been in the space for a long time feel cautious.

9/ Of course I can't rule out a bear market starting at any point in the next few months, but I believe it would be a short lived trend.

10/ I believe this will be a bullish five years for crypto. I am not going to be drawn into lower time frame predictions.

11/ Yes, we could have a mini-bear in this period, but I don’t subscribe to the view that we can have a crypto winter like our last one.

12/ I think the exponential growth of crypto just can’t be faded. I’m not surprised humans can’t get their heads around this exponential growth.

13/ The adoption of technology has never happened this quickly before in human history. Crypto is being adopted faster than the internet was.

Got to cc @RaoulGMI for this chart and his great work.

14/ And yes, people still want it to happen quicker, but we are going alright here, folks.

15/ Crypto has now proved it’s real. We have real utility, working products and clear blueprints to disrupt and improve many industries to the benefit of the global population.

16/ Stores of value ( $BTC, $ETH ), financial markets and banking (Defi and its endless use cases), file storage ( $FIL, $AR ), cryptographic truth ( $LINK ), gaming ( $AXS, $ENJ, $ILV ) , art, music, culture (NFTs, social tokens) etc. (the list is much bigger).

17/ The demand for $ETH block space is just staggering. Great thread by @CroissantEth here:

https://twitter.com/CroissantEth/status/1465485926088515590

18/ Everything is going to be tokenised. Everything will run on blockchains. Crypto is going to eat the world.

19/ This is obvious to anyone that has really immersed themselves in this space. The only question is how long will it take to truly play out.

21/ People and institutions not wanting exposure to the fastest growing technology in human history doesn’t seem like a good bet to take.

22/ We are seeing so much evidence to suggest that forward thinking institutions now understand that this isn’t going away.

23/ Let’s couple this with the fact that the only thing that governments can do now is print money and debase their currencies. There isn’t another alternative.

24/ People are aware of this and have to allocate to assets in order to try and keep their head above water, because they can’t sit in cash or buy bonds, as rates are so low.

25/ So, if you wanted to grow your wealth and keep ahead of inflation where would you look to stay ahead?

26/ Maybe some tech stocks, gene editing tech, life extension focused projects, space ventures. There will be winners in here for sure.

27/ But, traditional stocks, property, precious metals, bonds? Will these other asset classes offer the returns of the fastest growing technology in human history?

28/ No, they won’t.

29/ And what choice do millennials and Gen Z have? They have to allocate more of their capital further out on the risk curve, because they haven't amassed any wealth yet and less "risky" options aren't going to cut it.

30/ Of course, people will still want to take profits and improve their lifestyles in the real world, but they will just re-allocate to crypto after they have done this. What else are they going to do with the money?

31/ It's also ok for people to have different time horizons. People are at different stages in their wealth creation journeys.

The right strategy for some right now might be to take some money off the table, for others they will be looking to buy any dip they can get.

32/ People will also try and time the market to accumulate more of these digital assets. A small number will be successful. Many will not.

33/ You have to accept the volatility is a function of exponential growth.

34/ So, I’ll take the bet, buy my ticket and try and hold onto this rollercoaster ride, because realistically what other choice is there?