My thoughts on Crypto Right Now – Mustafa Sharkatly
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My thoughts on Crypto Right Now - Mustafa Sharkatly
17th July, 2022
Everyone heard of a story about a person who randomly invested a couple of thousand dollars in crypto, and next thing you know is sitting on millions. I am no different; I invested in crypto thinking I would also become a crypto millionaire by the year’s end. Come the end of 2021 though, and the crypto market collapsed, with some altcoins losing 99% of their value, anyone say Luna?
Investors around the world are losing trillions of dollars in the recent bear market affecting all asset classes.
50% of dollars in circulation today have been printed in the past 2 years, history repeats itself and this time is no different. Inflation has weighed heavily on financial markets with giants such as Netflix losing up to 75% of their value. BTC was designed to do the contrary; its main purpose is to function as a hedge against inflation. Instead, BTC has been in a bear market for the past 7-8 months.
In my humble opinion, too many negative external factors have acted as catalysts behind the recent downward trend, including the war between Russia and Ukraine as well as blockchain behemoths declaring bankruptcy, and finally the icing on the cake; several sudden changes to international regulations and policies have contributed to the unforeseen recent price movements as well. These factors continue to have an impact on BTC price, which was popularly expected to reach an all time high of 100K USD by the end of 2021, yet has fallen to a recent low of 18K come June 2022.
Even though BTC has dropped to a low of 17.6K, which is a level that it hasn’t seen since December 2020, all expectations are for the asset to break the 100K USD mark by the end of the year.
Starting off with the expert’s opinion, Waltman says, “Crypto technology is being adopted at a faster rate than humans first adopted Internet technology”. Proving the fact that crypto is too big of a market to fail now. Bullish experts are looking to re-evaluate the crypto market, with multinational business giants such as Nike looking to monetize their products in the digital metaverse, which has in-turn resulted in an increased level of trust between man and technology.
Despite the overall continuous increase in the adoption of crypto-assets, presently only around 3% of the world’s population are invested in crypto-assets and as of today have already created a market cap of 909 Billion USD of which 390 Billion can be attributed to BTC alone, so what happens when investors double? Simple, it’s basic economics (supply and demand). Demand increases while supply stays the same; there will only ever be 21 million Bitcoins, about 19 million have been mined so far! The last BTC is scheduled to be mined by 2140. Rest assured BTC price will skyrocket, the question is when not if!
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