Five Reasons the Bull Market Is Sustainable - CRYPTO FRIDAY
Hey DEFI TIMES community,
2017 was pure speculation.
Let's face it: Most ICOs were worthless, and nobody was even thinking of DeFi at this time - Unsustainable price action.
Boy, things have changed. Today, we have DeFi, institutions, and cash-flow-producing assets. This time, the price action might be...sustainable.
1. Elon Musk is a Bitcoiner
The richest man in the world is aboard. Let that sink in.
"I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin."
"I think bitcoin is really on the verge of getting broad acceptance by conventional finance people."
If there is anyone in the world whose opinion matters, then it's Elon Musk. Elon is the role model of every almost every entrepreneur in the world. Why? Because of his vision, work ethic, and leadership. And Elon just made the biggest bitcoin purchase ever.
Tesla bought $1.5 billion worth of bitcoin at an average price of $33,000. At this point, Tesla is up over 50%. Impressive.
2. The institutions are coming
Tesla's bitcoin purchase will lead to dozens of new institutions putting it on their balance sheets. Soon, CFOs and CEOs will lose their jobs for not investing in bitcoin. Why?
It is their job to maximize the company's value. It will be irresponsible for them to miss out on Bitcoin.
3. Celebrity NFTs
In 2017, we had Cryptokitties. Now we have celebrity NFTs, and that's 100 times more powerful. Stars with millions of followers are launching their own non-fungible-tokens.
Millions of people join our industry, but they aren't interested in blockchain and DeFi per se. However, they will have to buy ETH to pay for gas. They will learn how Ethereum works. Bullish.
4. Currency devaluation
The USD is a weak currency. Central banks print trillions of dollars every year, and governments airdrop thousands of dollars to people in need. This is a joke, right? Sadly not.
The money in your bank account will certainly shrink in value. What will happen when people realize that bitcoin is a better store of value than the USD?
Institutions already noticed. Retailers are next.
5. DeFi is here
DeFi is not only here to stay, but it is here to disrupt our financial system. Unlike ICOs, DeFi tokens have intrinsic value. They are governance tokens, capital assets, and utility tokens.
We can replicate stocks on Ethereum, issue bonds, swap tokens, insure our houses, and so much more.
We replicate every type of financial service that traditional finance offers. Not only that, we can offer even more services because apps on Ethereum are composable. Tokens represent money legos.
DeFi is not just marginally better than traditional finance. It's 100x better.
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All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.