Traditional finance (TradFi) has been quite cautious in adopting cryptocurrencies. Concerns about volatility, regulatory uncertainty, an association with illicit activities, and the reluctance to disrupt long-standing financial systems, and fearing decentralization due to digital currencies drove skepticism in TradFi and the media. This challenges the dominance of established financial institutions worldwide.
Despite initial skepticism, the unique benefits of cryptocurrencies, such as security, transparency, and efficiency provided by blockchain technology, are gradually being recognized by TradFi and signal a shift towards acceptance.
With this acceptance comes new opportunity:
In the eve of 2024, ETFs for Bitcoin and Ethereum feed the crypto market with liquidity and have kickstarted a new Bullrun.
Now is the time to exploit this!
We have often heard TradFi and newcomers believing that cryptocurrencies and crypto assets were not representing real, tangible value, and fear their digital nature might equate to a lack of intrinsic value. This skepticism is fueled by worries over cryptocurrencies' volatility, formerly unclear regulations, and a hard knowledge gap to the early adopters and builders of this disruptive technology.
The apprehension is that, unlike traditional assets, which have a physical presence or government backing, cryptocurrencies' value would largely be determined by market sentiment and technological adoption, seemingly ethereal. And difficult to control. What is traditional Fiat currency backed by?
From 2022 to 2023, fiat currencies like the USD and the EUR faced hard challenges. As fiat currencies are now printed in excess and distributed to create macroeconomic demand, these currencies experienced significant inflationary pressures. It turned them into relatively soft assets. The US using their currency for their conflicts for the first time adds to the dollar's decline.
Due to inflating their supply without inherent value limitation, this sits in contrast to many cryptocurrencies' fixed supply, making them an ideal hedge against inflation. And one, that is still liquid. Yes, Real Estate is hard to move, decays, a truckload of costs appended to it, and can easily get exposed to regulatory attacks.
Precious metals like gold are difficult to move, rarely ever in self-custody, and difficult to sell. These are asset classes of previous generations and most of them remained side-lined.
Who would carry illiquid assets across the world in 2024 ?
The decentralized blockchain can hold similar value across the entire planet, accessible by a seed phrase and a mobile phone.
Unlike fiat, the major large Crypto tokens such as Bitcoin and Ethereum have a capped supply, presenting a hedge against the inflationary tendencies by central banks.
There will only ever be 21 million Bitcoins - not a single one more. Ethereum is inherently deflationary. These inherent scarcities are what kickstarted 2024’s bullrun. TradFi’s Bitcoin and Ethereum ETFs increase demand, which is meeting a forever limited supply.
At the end of February 2024, the size of the new Bitcoin ETF has almost reached 50% of the Gold ETF, which has been launched in 2004.
Regarding market capitalization in 2024, Bitcoin has become hard to ignore as well. Bitcoin alone is about to flip Meta Platforms and Silver. This is without considering Ethereum- or Solana-based ecosystems.
To kick things of and remain scalable, March 2024’s Dencun update of the Ethereum network further drops transaction costs considerably.
Coupled with the additional scalability of Layer 2 (L2) networks, which are networks based on Ethereum’s EVM-architecture, the Dencun update can push transaction costs down to single-digit cents, even under heavy load during the Bullrun.
To discuss why cryptocurrency offers the most beneficial markets for traders, we first must look at the downsides of some of crypto’s competitors - Forex and stock markets.
These points show why Crypto Trading is something that can increase both your profits in absolute and relative numbers, as well as your profitability if executed correctly and supported by the right systems with high accuracy in signals.
Trading is a Player versus Player environment.
Your indicators and systems need to be better than what the masses out there have access to.
Holding large stakes in classical assets has many downsides, like monetary debasement, economies in turmoil, regulatory dependencies, running costs mitigating profit, and more.
Crypto solves many of the issues clssical asset classes come with. Here are the key reasons why Crypto may be considered useful for long-term investment strategies.
An image of the Trend Aggregator Neutronstar. In the blue areas it protected investment portfolios from gigantic losses.
All that sounds great, but Crypto has high volatility - also excessive trending over long terms.
Many private investors first rode the bull market up, and then the entire bear market downwards all the way into 2022. Missed opportunity, massive losses, ultimately broken dreams and regrets.
Now many seek to “sell when the hype is high”, or “sell whenever retail enters”, or some other obscure, unprofessional criteria. Not exactly optimal.
Professionals use complex quantitative systems to map trends and market movements - they rely on computational systems which are usually inaccessible. To develop these, pooling skill, domain knowledge and development time together is easily a 6 figure investment. But Software scales very well to sell, which is our benefit - hence we founded QuantraAI.
Your benefit is that you can cut your positions very much near the peak of this Bullrun by using our professional systems.
