Merely A Foundation
I am not a Bitcoin maxi. However, I am simultaneously not opposed to Bitcoin but prefer to see it as the foundation upon which a new economic construct is being built. I do not mean in practical terms of a layer 1 blockchain, but rather as a foundational understanding. We have come a long way since the Genesis block, and are now in the process of establishing an entirely new financial and economic construct.
DeFi has had a significant impact. However, in terms of its true potential, it remains untapped. Such significant changes that not only disrupt but reshape existing systems take time. This will be a journey of ever-increasing adoption, technological breakthroughs, and regulation. The idea that many initially had of avoiding regulation and systematic structuring was a little naive, to say the least.
Yes, Bitcoin will eventually be tamed. However, there is one particular aspect that will resist this… and that is the built-in monetary policy and halving dynamic. In other words, the antifragility of Bitcoin is about to be pushed to the limits. Outside of external factors, the natural (price) stability that accompanies a growing market should also be considered. Essentially, Bitcoin will be tamed one way or another.
What is however rather important to establish, is to what extent this will occur. I am not concerned with the Bitcoin price, apart from it providing a directional indicator for altcoins and micro-caps. My focus is primarily on WEB3, tokenization, and of course, AI. In my opinion, Bitcoin is providing the foundation… the stage, if you will, to introduce a tokenized and interchangeable/interoperable world.
Innovation & The Future
Yes, I am actively involved in speculation. However, many of my altcoin picks are also rather long-term in nature and lend themselves to the abovementioned criteria. Some months back I began looking more closely at the Polkadot ecosystem. Despite Polkadot receiving little attention from the market, I admire and appreciate what they are trying to accomplish.
Furthermore, when you look at how many projects are shifting over to the Polkadot ecosystem it becomes apparent that the “tech” is indeed attractive and desirable. Projects and developers are not retail investors. They couldn’t be bothered with the price performance of the underlying token. That being said, there needs to be a certain degree of stability and price appreciation over time.
Many of my altcoin picks tend to incorporate projects that are geared towards innovation, rather than that of a speculative nature. Essentially, projects that change the world will eventually realize enormous market caps. However, for many investors, patience is often perceived as failure. This is primarily due to their impatience. In other words, if it hasn’t performed yet… it never will!
This can be true. However, it’s not a rule… and only research and closer inspection can provide a more accurate perspective, regarding future potential. Regardless of BlackRock’s agenda, the concept of tokenization is now something being discussed and envisioned, rather than ignored. Essentially, Bitcoin is paving the way for innovation. In many respects, Bitcoin has made a lot of what we now enjoy, possible.
What Jamie Dimon refers to as a pet rock (Bitcoin) has been around for more than a decade, has an enormous market cap, and is now becoming an “investment grade” asset. Not only that, but it is also legitimizing an entire industry, and providing a long-term track record of reliability. To refer to Bitcoin as a “pet rock” speaks more of his character or lack thereof. It is rather evident that there is a lot of meat surrounding this bone.
Final Thoughts
Short-term speculators are perhaps missing the woods for the trees. That doesn’t imply one should ignore short-term opportunities. However, it’s imperative to be conscious of the bigger picture. Blockchain will eventually penetrate every single facet of our lives… like it or not, it’s coming. The most logical response is to position yourself for the future. That’s it for this one. Stay focused, keep stacking, and I will see you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using InLeo Alpha