A good time to reflect and prepare for what is to come:
"The trend temps to end in a climax": We have not yet seen the climax.
We are in the early stages of the "reset" with the last convulsions in yesterday's economy. On the way to tomorrow's economy, which will wallow in a different kind of structure, that much is clear.
You might say: I am not participating in the new digital. Well, I have bad news. We're already in it...
What do I expect from crypto as a whole might be a time to bring this up. Gouvernance managed by networks instead of central institutions, and a new structure of money systems. (value transfer systems)
Marcro economic in long & short term:
- Price trend for cryptos and the stock market: A possible bullish moment before a big crash in the economy. Dollar also rising vs. all other fiat currencies. (Euro, Pound, Yen, ... ) The precursor to this UP trend in the markets should be the bond market. This is purely a speculation.
According to a technical analysis perspective, this is possible. Fundamentally, anything is possible, because an unexpected world event can change everything.
Potential new trend for the different types of crypto currencies:
2 : Quality cryptocurrencies will have to fight a battle between centralized & decentralized (CBDCs - Central Bank Digital Currency) Crypto currencies that should be a protection and leverage against inflation will have to fight the battle. There are also crypto currencies as "stablecoin" due to its correlation with the price of gold or other commodities or the US$. The so-called "commodity coins," might become interesting as a protection of value versus fiat coins in the future. This is still an unregulated market. Note that crypto CURRENCY are a form of money, a transfer of value.
3 : Utility coins within the metaverse. Cryptos that have a particular "use case", within some kind of ecosystem. The new hype, NFTs will still find their tentacles for an economically real usecase, with a link between the virtual and physical economy. We really see a beginning now, much to discover in the future.
4 : Asset backed cryptos will be launched guaranteed by commodities and crypto shares( STOs). The entire structure of Wallstreet will move to a blockchain based system.
A word about the 4 points described:
As mentioned earlier, it may be that the economist David Hunter ( David the contrarian ) may be right after all, where he does a full explanation to the run-up of the Fed's decisions, which would probably reverse its policy. https://youtu.be/FUNC-MTq9PQ The bond market will take the lead, and the Fed will come after this trend. If we see the bond market rise, everything else will follow. You can think of the markets as communicating vessels. The bond market, debt market, stock market, commodity market, forex market, derivatives market, comex market, crypto market .... everything is connected in one way or another.
#FEDPIVOT to be found on twitter. I made a Youtube about it earlier. https://www.youtube.com/watch?v=9CY0GMquHEM&t=359s
The Fed cannot keep the belt tightened for so long with high interest rates, and it will soon be all hands on deck to bail out the "debt market." A large liquidity of freshly printed dollars are needed like never before to save the debt market. Currently there is a big problem in mortgage loans, personal loans, car loans etc.... due to high interest rates these have skyrocketed. That fresh liquidity in turn should flow into the other markets, driving the markets up. While in reality the economy is doing poorly. A fake uptrend moment so to speak. Remember, nothing has a correct value anymore and all markets are manipulated. Nothing makes sense anymore in these "end times."
It looks like the markets will NOT wait with their bullish trend until the Fed will effectively reduce or stop raising interest rates. So it appears, according to economist David Hunter's theory. In any case, I find it an interesting approach. This situation can also be recognized from previous cycles in the late 1970s and early 1900s.
Inflation can also change to a temporary deflationary trend before a larger higher inflation joins. We only get hyperinflation when the general population has completely lost confidence in "the system," which in turn is linked to a particular currency. In our case Europe, the European union is pegged to the Euro.
Due to this temporary UP trend, lol liquidations can take place for the bear leverage traders (shorters). https://twitter.com/GameofTrades_/status/1589316685378379778?s=20&t=h_JyrX8HhH262Gx-q4v7dQ q This is a potential scenario. Anything is possible these days and an unexpected world "event" can heavily influence the markets. A so-called blackswan event.
I also just learned that a "proxy war" is underway between Saudi Arabia & Iran. The world stage is in preparation for "war". WAR IS BIG BUSINESS. War is necessary to maintain the house of cards, and to hide what is really going on in the financial world. Research: All wars are bankster wars.
Certain alternative economists such as David Hunter speak of an S&P500 that is around $6800 and a DowJones of +-$40k. Martin Armstrong also speaks of the DOWJONES of around 42k$. See Martin Armstrong's blogs : https://www.armstrongeconomics.com/blog/
Alsook there is the stuff in Ukraine, the corona, China, Taiwan, a potential cyber attack ...
The more you see happening in the geopolitical and economic scene, the harder it gets. At the same time the more fun it is to see how everything is connected as long as you do ," follow the money." If you follow the money flows, you can make certain the links and also recognize many cycles.
We would apparently be in a similar end phase of the same great cycle of +-500yrs as the end of the roman empire era. Then there is another cycle of +-2100yrs in the transition from the Age of Pisces to the Age of Aquarius. Also a climate change cycle? Money flows from the West to the East? So you see.... heaps to discover.
Now, back to crypto. What role does this technological evolution play now?
What is the role of crypto?
Indeed, blockchain technology was created to serve as a safety net for the old failing, and at the same time an ecosystem for the new. Both for a new way of exchanging value (money) and for economic systems governed by mathematics.
Important to know is that we have a chance to free ourselves from the central bankers.
Or don't we?
Do we have a chance?
Well, the fact is that we have a chance if we are all conscious enough to choose true decentralized systems.
bvb Monero as a means of payment with privacy built into the base code, and maybe even BitcoinCash, Digibyte and Litecoin.
These have a relatively high transaction speed on the FIRST layer of the blockchain. The last 3 are a copy of Bitcoin's code with a slight technical change.
Bitcoin remains the "reserve currency" within crypto with the lightning network as a solution for fast transactions.
When it comes to dollar correlated coins, there were good alternative solutions. Decentralized coins that are a dollar version so to speak, but it has not been to be....
The fouder of the MakerDao has suspiciously "died".
https://www.cryptopolitan.com/makerdao-co-founder-found-dead/ , https://youtu.be/Ei_CBf_iqhU
The MakerDAO is a liquidity pool that operates truly decentralized, governed by math, from which the DAI us$ was extracted. So a legit decentralized dollar. 1 DAI = 1 us$
Now Blackrock investment group is also involved in Coinbase and the USDC, which will basically be the precursor to the US$ CBDC.
Tether dollar has been the subject of much writing and fuss regarding its underlying value. Just research, and you have a ton of info & scare posts.
Also see the systems of Ripple XRP, Stellar XLM, XDC with the ISO20022 standard, which I suspect are centralized. These are the so-called coins that have a certain similar "message code" and will in turn redefine the existing institutional structures.
A few years back, all crypto currencies had their own course. With the advent of the Tether stable coin and the ability to trade with futures contracts in late 2017, cryptos were more & more correlated with tech stocks and price manipulation is more possible.
Perhaps we will see a breaking point in the future when fiat becomes worth less and cryptoCURRENCYs will then be a real hedge against inflation.
We are now also seeing more & more the Dollar, Euro, Pound, SwissFranc a 1 to 1 value. I see this as a kind of preparation of what must come before the launch of a "new world (order) reserve currency".
Crypto is more than just currency, we also see this with the smart contract platform coins (1st layer coins) which in themselves then also have their own utility tokens ( 2nd layer coins ).
DAPPS are built on smart contract platforms, each of which has its own "use case" in tomorrow's economy.
In tomorrow's economy, there is lol and a new virtual world is emerging.
The METAVERSE. It sounds grim, but there are a lot of oppertunities there to find the right coins now with a usecase in tomorrow's economy.
Just think of the virutal land being sold now.
I'm not into it, but it has lol. https://youtu.be/0pIu6kZnqYc
The world will be tokenized. I.e., all physical items of value that can be traded will be tradable on a blockchain based ecosystem. https://youtu.be/tgXGM2PG5jM
This is where I see a real possibility of the real value of cryptos, where commodities will be tokenized. Commodities are the next big thing after the crash and in redefining economics and value. Commodities are currently heavily undervalued due to the strength of Wallstreet's policy of maintaining in confidence the petrodollar. We are now seeing the end of the petrodollar era. https://twitter.com/abflipse/status/1602316192185819138?s=21&t=bTBRXVmFWx5ibTU3-M0uoQ
An interesting concept of a platform: Veritaseum. This is a potential gem that only a few know about in crypto world. https://youtu.be/9PyizWxzlPg The founder also claims his patents for all things DEFIspace. ( Decentralized Finance )
Someday this platform could be used by various nations to restructure & value the country:
- Human capital
- Real estate value
- Commodities value
This as collateral for a new national currency. A CBDC admittedly.
We will also have to deal with CARBON credits which will be linked to currencies. An interesting explanation from our friend DICK of CryptoViewing. https://youtu.be/_17zikVQZg8
There is such a backlash from the BRIC countries to support their CBDC with these values. In Western countries, central banks are trying to launch a currency (digital Euro) based purely on trust. But since public confidence is noticeably eroding, the success rate could become a difficult task. The success rate of a national currency must gain the trust of its users, in other words : the population.
Let the games begin:
Now, 1 thing is for sure, gold & silver have a track record of 5000 years, this has always been a good asset in turbulent times during a transition. See a good interview with WillemMiddelkoop here : https://www.youtube.com/watch?v=wYHsAZwZKzM
Crypto money and digital assets you must learn to manage yourself, or someone will manage them for you.
Remember, the one that controls your money, controls you!
So better to learn to be your own bank and take responsibility for you own management.
Be the captain of your own ship.
Inforcrypt is here to teach you how to sail in the most turbulent seas. We give basic along, and like to refer to other interesting economists and people in crypto.
As well, a healthy mind and body is the most valuable thing you can have. This is also addressed in our monthly ZOOMMEETINGS.