Where Does the Utility Come From
Crypto insider Mike Novogratz had a lot to say at the TOKEN2049 conference in Singapore and he struck an upbeat tone as crypto has been one of the worst performing assets in the past 365 days.
His words were mostly silver linings and an optimistic view of the future.
His argument for another spike up in bitcoin was mostly centered around how the next Bitcoin’s (BTC) bull run will have to be much different from historical cryptocurrency rallies in terms of story and utility.
Compared to previous bull runs, the next Bitcoin rally will be more focused on utility and less on the story.
An asset can only go so far based on fear-of-miss-out (FOMO) hype.
The issue now is the lack of buyers and it’s no surprise.
Every little bump up is a great exit point for holders to dump more coins.
In almost every crypto newsletter I’ve written, I chronicle how recent events make it less attractive for the incremental investors to bite at crypto.
The data backs me up as new buyers have quit this speculative industry and need something that pays an annuity-like premium.
According to Novogratz, the 2017 bull run was mostly about the story of people not trusting the government and wanting more privacy and decentralization.
The blockchain narrative hasn’t really budged at all as well as few institutions have integrated the technology into daily tasks.
I don’t see where the “utility” comes from.
Some speculative investors began buying digital real estate in the metaverse in hopes of accruing rental digital revenue is beggars’ belief.
I don’t see the utility there as well.
It’s all good to use buzz words like “scalable” and “user friendly” – yet I see no actual development.
I don’t believe crypto is the inherent successor to fiat either, and I do believe that at best, it could be a nice compliment and that’s if miracle after miracle happens from here on out.
If governments regulate the heck out of it, its value diminishes greatly.
Novogratz needs to stop pushing the “inevitable” theme like a real estate agent advising buyers to buy the most expensive mansion at the top of the market.
Hilariously enough, one of the knocks on crypto was the elevated volatility which has reversed the past few months.
Why?
The lack of volatility stems from the lack of new buyers and sellers. There are still owners who haven’t sold and are holding until infinity, so the price doesn’t get pushed down further, but investors are so turned off by the charlatans and dangers in the industry that they rather put their money in something more real.
Crypto executives need to stop pushing the crypto to $1 million theme as every headwind imaginable is crushing the price of crypto.
Even worse, crypto executives are also facing billions of dollars in lawsuits and I believe it is more responsible to talk about the current existential crisis that Bitcoin faces.
If Bitcoin goes to zero, then crypto is finished so it’ll be interesting to see what the last big holders do with their coin.
Do they sell out the rest and crash the market? Or wait for the next bull run?
My bet is that the price of Bitcoin stays in a range for the next 15 months.
CRYPTO SALESMAN WANTS TO PUMP UP THE COIN
