Crypto was a niche and a shop interest from a certain subset of investors and political dissidents focused on technology. But as President Trump’s recent actions have shown, this is no longer the case. The crypto becomes common.
It was a time of whirlwind for the crypto recently. First, anticipation on the country’s first pro-Crypto president pushed Bitcoin on the $ 100,000 mark. Then, just before Mr. Trump took up his duties, he and the first lady Melania Trump each launched their own official cryptocurrency token, or “same corner”.
The second day of Mr. Trump, the Securities and Exchange Commission launched a new working group on cryptography. Then, at the end of last month, Trump signed a decree to promote American leadership in cryptocurrencies and assess the potential creation of a national stock of digital assets.
To top it off, Trump gave a complete forgiveness to Ross Ulbricht, founder of a dark web market that has enabled anonymous purchases in Bitcoin. Mr. Ulbricht, a Bitcoin pioneer, was considered a political prisoner by libertarians and many in crypto – and until very recently, served two sentences for life over 40.
However, for some criticisms, the whole cryptography industry is nothing more than a “digital tulipmania”.
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The term “tulipmania” was initially used to refer to a period of three years in Dutch history (1634-1637) when the price of Tulipe bulbs briefly climbed before suddenly collapsing. For criticism, this prefigures the future of crypto. But a deeper look at the cryptography market reveals that it, unlike tulips, is rooted in a firm base.
Pushed by Bitcoin, the global cryptography market has been endured for more than 15 years, including three complete four -year cycles. For each of these cycles, the price of the price of bitcoin has been higher and higher.
As a digital actor, Bitcoin has a range of unique features, in particular its decentralized network, its immutability, its safety, a really finished offer, its transparency, its divisibility, its resistance to censorship and its global accessibility. Not many tulip (or fiduciary currencies) bulbs have all these features.
Overall, the total crypto market capitalization (the value of the US dollar in all cryptos) is estimated at more than 3 dollars in early February. The investment leaders Larry Fink and Ray Dalio now openly approve the Bitcoin. Trump appointed the former Pro-Crypto Commissioner, Paul Atkins, to preside over the dry in place of the famous cryptography critic Gary Gensler.
As the crypto has developed dominant, the number of “altcoins” – digital assets other than Bitcoin, many of which lack utility – has also skyrocketed.
This is where the coins come into play.
The most popular play is the most popular Dogecon, which has started as a joke but which currently has a market capitalization of $ 39 billion. Some have hypothesized that DOGE will be the first piece of memes to receive the approval of its own fund negotiated on the stock market (ETF) – according to the traces of first -rate cryptos like Bitcoin and Ethereum.
The FNB Crypto expand the exposure and accessibility of crypto to traditional financial markets, in particular to more conventional investors, which can exchange ETF Crypto on the stock market. As the crypto is adopted and accepted (for example, via the approval of the ETF), its legitimacy increases, in turn generating an additional value.
Many deplore the momentum of the pieces even in recent years, fearing to tarnish the respectability and technological innovation of more legitimate cryptos.
These opponents are not all false: the memes parts are very volatile and, above all, go to zero. But before throwing the coins with the tulip bulbs, it is important to appreciate what a meme is really.
A meme is not only a largely recognized image – it is the representation of an idea or a broad and often deeply rooted belief.
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What gives a room of its value? The same thing that gives any active value: belief and demand. When enough people believe that the same (or idea) of an asset, it has value.
All the money depends on the memes implicit.
In the end, even the US dollar is a piece of memes. Yes, it has a legally applied utility, but what gives these small pieces of green value of the paper? Croan and collective global demand.
This has become painfully more apparent in recent years, because raging inflation and the reduction in purchasing power have led many Americans to involuntarily questioning the meme of the dollar. It is this confidence or this decreasing belief in the “meme of the dollar” which has led to storing their purchasing power in other more solid and stable assets.
Thus, although there may be legitimate reasons to criticize the pieces even, their dependence on a “meme” is not such a reason. While cryptographic leaders hope for more regulatory clarity over the next four years, we should strive to preserve the freedom of investors to make their own choices – even if this freedom means choosing bad parts.
In the end, only the best crypto (s) will resist the test of time. But as belief in the cryptographic same is developing, it will shape not only the markets, but the way we think of value and money.
