For people that have completely fallen down the rabbit hole of the cryptocurrency market; we feel that we have built a strong grasp of how the market works. How the entire market moves in 4-year cycles centered around the Bitcoin halving, split evenly between 2 bullish and bearish years. We also are well aware that each cycle there seems to be a new trend that helps to bring degenerate excitement into the market, which also is a factor that helps jumpstart bull markets. Trends such as ICOs, DeFi Summer, yield farming, NFTs, play-to-earn, and also meme tokens. This is how the market has worked in the past. If you knew how the market worked, it was very easy to make money. Accumulate during bearish times, and reap the benefits during bullish times.
But nothing lasts forever.
The reality is that the cryptocurrency market is growing by the day. What is true today, likely won’t be true in the future. As large corporations begin to trust Bitcoin more, as the general population begins to finally wake up to how important it really is, that is when a rush toward Bitcoin unlike anything we have previously seen will happen.
At first, this will cause the market to go parabolic, surpassing anything we have seen during previous cycles. When cash, gold, and real estate are all losing value massively to Bitcoin, that is when the prophecized largest transfer of wealth the world has ever seen will occur. With early Bitcoin and crypto adopters reaping the benefits. During this period Bitcoin reaching a price significantly higher than $1 million will happen. Ethereum will be worth hundreds of thousands of dollars. Extreme wealth will be made.
If cryptocurrency does take over, and Bitcoin does become the world reserve currency. There will be short-term pain. A world where those who prepared will be very fortunate. And a world where those who didn’t will feel pain. In this scenario, even fiat millionaires could become poor overnight.
But then things will settle down.
While we need Bitcoin’s volatility for it to reach high prices, being volatile would make using it on a daily basis difficult. After it reaches a certain level Bitcoin will become much more stable, moving slowly like gold or the S&P 500. That is when its use as a currency will be at its peak. Very few people want to sell Bitcoin currently due to its ability to greatly appreciate. You wouldn’t want to sell an asset at $28k when you believe it will be worth millions someday. This is why Bitcoin is currently more of a wealth savings tool, than a means of transaction. But that will change. Once its value appreciation begins to slow down, people will be much more willing to sell it.
When the initial change to the world using Bitcoin as the world reserve currency actually happens, as mentioned before there will be growing pains. Just as there is when any government makes extreme changes. Short-term pain, to prosper later. The truth is that moving to a Bitcoin standard would benefit regular people the most down the line. By going to their job, working hard, and then putting their savings into Bitcoin. In this scenario, their savings wouldn’t be able to be inflated away, and would actually appreciate in the future. People would no longer need to worry about being investors. Now they would only need to focus on their craft, saving a bit of money, and enjoying their time.
The key point is that things will change. Things that we currently think we know, will no longer apply in the future. Today the market is volatile, but years down the road it won’t be. Today there are meme tokens popping left and right in hopes of getting rich, but as more regulation comes there won’t be. Today the market moves in 4-year cycles, but in the future, it won’t be. Finally, today we are early in crypto, but those joining soon after won’t be.
