Cryptocurrency, Web3, & Investing
Web3 feels like the opportunity of a lifetime to get in early on a major global and economic shift away from centralized currencies towards decentralized currencies.
Many argue, including former Twitter CEO, Jack Dorsey, that Bitcoin will become the reserve currency of the global monetary system in the future. I understand the probability of this occurring is currently low; however, the momentum the entire cryptocurrency and decentralization movements have is mind-boggling. The space moves extremely quickly and major new ideas/innovations (DeFi [think DAOs, Treasuries, etc.], Stablecoins, etc.) seem to pop up quarterly/semi-annually.
Given the banking world's relatively high income, to me, it makes sense to consistently shovel a small portion (think 5-10%) of each paycheck into Crypto projects I find interesting.
I can't think of another investment opportunity that poses an extremely high return possibility with as good of a risk profile.
Would love to hear everyone's view on crypto/web3 investing.
Your thesis to me sounds like “banks big, crypto big, so crypto must get bigger.” Is there any reasoning or analysis behind this? I’m not disagreeing with the prediction but you can’t really expect people to share unique views on a topic like this…
Not looking for unique necessarily, rather, just looking for discussion.
Thesis is more: “Money big value. Crypto become money. Crypto big value.”
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I think the idea is that crypto can replace multiple areas of finance. For example, if you have a protocol that can replace payments and insurance the TAM for that is greater than each individually. I’m being hyperbolic as an example, but execution for some of these YOLO trades has some big numbers (as it should given the risk)
Why would a currency replace payment services or insurance? Do you just mean payments and insurance will be executed with crypto?
Web3, DeFi, and most things thing crypto are hype and bubble. Note I said most, not all. It will be much harder to pick the long-term winners than most crypto hypers think. That being said, yes, if you can find those ~long-term~ cryptos that will be disruptive, then there are huge gains to be made.
Imo, Bitcoin is shit! It's shit and will never ever replace the traditional money but blockchain, that is something that will revolutionize, that is the next big thing, the next "internet". The applications of blockchain are just amazing. The fact that you can own something 'digitally' and there's no chance of fraud and everything else (for advantages go read an article) it's truly revolutionary.
NFT's, they are overhyped at the moment and in the next 8-12 months or so, you'll hear everything wrong with the NFT's. Bad things will happen, crypto market will crash, people will lose confidence, shitload of money etc. But after that things will change, people's opinion will change and NFT's would again gain momentum but this time, for their beauty.
TL;DR - Bitcoin meh! Blockchain wow! NFT's wow (after the crash)!
Missed the cryptopill 4 years ago but swallowed it whole recently. Crypto is here to stay and it's not going away anytime soon. If anything within the next 40-50 years we'll begin to see massive adoption and use of cryptocurrencies, especially in western/1st world countries. Miami is already on the verge of becoming a crypto city. With that being said, 99% of cryptocurrencies are shit coins and most devs are scammers that will RUG you. Me personally? I'm all in on Algorand along with the side projects that are branched off the ASA blockchain. Wish I got into crypto back in 2016 when I was aware of it. That being said, BTC and ETH won't be going away either. Whole ecosystems have already been developed and are wildly used, along with so many dapps that have been built using ethereum. Ignore what Jack Dorsey says, he doesn't know any better than the average crypto investor and HODLer. He's just a bitcoin maxi and wants only BTC to go up instead of ETH and other alternative blockchains like Algo, Solarna, and others.
Redpill me on Algorand, fren. Why would it defeat all the other alt L1s?
Superior tech. ETH & BTC are centralized as are all other blockchains to a certain extent. Also very easy to use Algorand and the ecosystem is lightning fast due to the L1 taking 4.5s on average to approve and validate a transaction. But I don't think Algorand will be the only blockchain. BTC and ETH aren't going anywhere because BTC is king, and a lot of whales store their wealth in BTC. ETH is here to stay especially with everyone waiting for ETH 2.0, where they'll actually have a proof of stake instead of proof of work consensus mechanism. It also won't go away because high gas fees prevent people from moving capital around, in essence they're staying parked because they'll make more money holding ETH in their wallets than they would switching to another L1, and also because there is already a robust and incredible DeFi ecosystem that works amazingly well on ETH 1.0. Just Algo beat them to ETH 2.0.
But in the end, to answer your question simply, technological superiority. Plain and simple and an amazing team of engineers and researchers backing the project. You shouldn't be dissuaded from gambling/speculating on other coins tho. I say it like this, a market is a market regardless of whether it's some physical product like real estate or some abstract product like cryptocurrencies. You can either make money or lose money in any market. If you're curious to learn more about Algo I highly suggest you read the white paper and take your time with it. I had a better time understanding the jargon because I come from a CS background so it was easier to understand the discrete math and probability terms, but don't let that dissuade you from pushing through and reading all 75 pages of it. It's truly amazing tech and is something I definitely see replacing the old financial system over the course of the next 50 years.
There will be those disappointed people who have never invested in crypto before.
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