Crypto Charge Gains Momentum
Yesterday was an historic day for crypto currencies with the bulls released unreservedly, resulting in Bitcoin gaining over 4,5% on the day while Ether gained over 6%.
Bitcoins has gained over 175% in the past year period starting at a level of $37 283 on 23 November 2023, while Ether has had more of a bumpy ride in the past year hitting highs of over $4000 per coin, it has still had an overall gain of over 73% in the past year.
The real star of the Crypto Charge however is the lowlier Solana coin, that started its journey a year ago at the $56 level but has charged to a 399,96% growth in the past 12-month period and is currently trading in the $261 area ($257.229 close yesterday – 21 Nov). The coin has grown by 24,7% in the last week alone and seems to be set to grow further today (22 Nov)
What has Changed in a Year?
Global uncertainty
Uncertainty has been the key factor that has underpinned the Crypto market and crypto that had often been a volatile and rapidly moving market, up or down, has gained more credibility in a world that has been driven by great turmoil and unprecedented changes and challenges, that has cumulated in crypto becoming a safe haven for investors.
Global geopolitics have at best been ugly in the past year with multiple conflicts and political uncertainty creating an environment where people are looking for safer investment bets that still provide a good return.
Traditional safe havens such as gold, have also seen growth in the past year but nothing like you have seen in crypto currencies, that are becoming more stable, certainly among the top crypto coins, than has been seen in previous years.
Generational Shifts
Generational changes have also had an impact with the emerging Gen-Z market having grown up with crypto on their investment horizon. This generation have seen numerous people from their own generation making extraordinary amounts of money on crypto currencies, many of whom originated in the tech industry.
People such as coin-base co-founder Fred Ehrsam, who at the young age of only 36 is a crypto billionaire and someone who has built the belief in the value of crypto coins. Ehrsam is a computer scientist and engineer by training and was also a financial analyst at Goldman Sachs before starting Coin-base with co- founder Brian Armstrong, a fellow crypto billionaire.
Ehrsam was also a big video gamer and was competing in national gaming competitions in high school and says that being immersed in gaming where there are virtual currencies made it pretty natural for him to adopt to Crypto currencies
These and many other young Crypto “heros” have broken down the crypto cynicism barriers and have made crypto more of a mainstream investment category for younger generations who are coming into their own.
Can The Bubble Hold?
The big question on many investors’ minds today however is: Will the bubble continue to hold or will we see a magnificent collapse in the crypto market?
Some analysts are starting to warn that a bubble burst is imminent, with Nobel Prize-winning economist recently warning that the crypto boom is a dangerous bubble that is likely to burst. Eric Maskin, a Harvard professor who was one of the winners of the 2007 Nobel Prize in economics, has said that the ongoing crypto craze is both a bad idea for countries and a risky investment for individuals.
Maskin’s concerns include the impact that Crypto has on national currencies where central banks and governments have used money supply as a way of counteracting economic downturns and inflation by issuing more money or reducing money supply.
The counter argument to this is that the overprinting of money in economies has brought very high levels of debt and so having a limited amount of currency, such as crypto’s are, are in fact better in the longer term as it creates stability.
Central banks have also raised the possibility of issuing their own stable coin currencies and this may well still be a new development.
Only Time will tell But Crypto here to Stay
It is likely that Crypto currencies will see some adjustments and modulations in the short term, and some may well fail due to structural issues in the company issuing them, however it is clear that Crypto currencies have cleared a hurdle it previously failed to breech and has entered permanently into the realm of mainstream investments.
With the likes of Elon Musk and a plethora of young tech billionaire backing the crypto market, it is here to stay and will overtime become a mainstream trading currency that will take it into the next level of valuation and drive further demand.
