Bitcoin for $ 0? Cryptocracy in 2022

Ok, I have to take a break from calling bitcoin from highs to say $ 13,000. I need to write a strategy piece, which no one will read, but will answer the question: is crypto a “hula hoop” or not, because people ask.

In a boom or a crash, there is only one call to make. Is the asset real, or is it a pile of rubbish going through the cycle of boom and ruin of public market promotion that the public loves to gamble on, but which is not actually a long-term resource?

This call is as basic to crypto as it was to dotcom boomsters or Nifty Fiftyers or Tulip-Bulbers in the past.

Many people believe, especially now that bitcoin is crashing, that crypto has no “intrinsic value”. You can confuse what inherent means, but that question boils down to: Is crypto a bunch of worthless feces?

Like any good exam, the answer lies in the question. Even fertilizers have intrinsic value.

Crypto has a value because it has a utility issue.

Crypto has many more uses than horse manure, and many are much more important than growing roses.

On the base itself, every cockroach you can back in a race has a value because everything a human can bet on has a lot of benefit and the difference between a Kentucky yearling in a racing industry of $ 100 billion a year and a cheap access to excellent. Burger meat is simply down to the point of use for speculation, and we know that there is a huge amount of gambling on the price of crypto. At 1x sales, racehorses have an intrinsic value of $ 100 billion, with bitcoin, a revolutionary technology, only worth 3 times as much as transportation technology 100 years out of date.

Meanwhile, the “black economy” is somewhere between 10% of total global GDP in developed countries and 40% is the crazy developing economies where financial anarchy prevails. How much intrinsic value for crypto is it? By the way, there are around 1.5 trillion dollars of “fiat” banknotes circulating in the black economy, so crypto is a side show when it comes to malicious transactions. Heaven knows how many countless trillions of “dodgy” ‘fiat money are happily floating around in the banking system, so do not dislike crypto intrinsic value from it.

But speculation and criminal activity are only a small part of crypto’s intrinsic value.

The greatest value is inherent in its challenge to seated tenants. Which, as a small example, knocks.

Have you noticed how banks have started the game since bitcoin broke into the public consciousness? Gone are three days of transfers, hey immediate payments. You can feel that the best banks are adapting to the new reality with crypto and fintech. The old economy is now ‘TradFi’ and will probably become as popular as ‘Trad jazz’. It will be charming, but no longer the top of the pops.

The banking example is just the tip of the iceberg, and that iceberg is going to sink many market-abusing oligopolies, and when you look for them, they are everywhere. Crypto is the death of gatekeepers, and that is why gatekeepers do not like crypto, and gatekeepers have a lot of power to push back. Unfortunately for them, and fortunately for us, you can not put new technology back in the box. Crypto cannot be invented, and at all levels, if crypto is not used, the latecomers, like the horse as transport, will become obsolete.

What will not be “crypto” in 20 years?

On top of that cryptocurrency world will probably still sit bitcoinBTC
.

Even if it does not, it will be another crypto, one that starts as nuppence and goes to the moon.

CBDCs (digital currencies from the central bank) will not catch up because they can never be programmable money. It can take a century before a country risks its entire economy due to the unlikely prospect that there are no flaws or hacks in their sovereign currency, so private crypto will dominate future developments.

In a world where many people still think paper money is rubbish and that gold is the only currency, more than 1000 years since some bright spark came up with the idea, it is not surprising that many people think crypto is rubbish, especially during a crash. But in a world where cow dung, or BS for most of us, is worth $ 20 a ton, tokens that unlock applications like DeFi, NFTs, Metaverse, a punt next month, some quality steam, as they begin to turn the world upside down trading and governance upside down, can, will and deserves to command a percentage point or two of the market value of $ 200 trillion in the capital markets.