The market is in a state of bloodshed and many new investors are likely to panic as they decide whether to hold on or cut their losses and bail. However, Messari founder Ryan Selkis took to Twitter to give his views on bigger picture, based on his Cryptocurrency Thesis for 2022.
Imagine dragons…no, bulls
Although in this area there is a tendency to refer to the “crypto bubble” to compare it to the “dot com bubble,” Messari researcher speak that the former does not equal the latter in terms of market capitalization. Moreover, he more That Bitcoin is “Supposedly not even “Web3”. “
Even so, there is no [too] many reasons to despair. According to Selkis, the magnitude of the upcoming growth and necessity could spur innovation. He tweeted,
“…Last year, there were obvious challenges of scale as DeFi and NFTs exploded. That leads to big movements in the L1s. ”
Additionally, Selkis emphasized the need to invest in not only the cryptocurrency, but also the infrastructure that helps it grow. He say continue,
“Now? It’s a multi-beat world. NFTs will increase 100 times in 10 years. DeFi will = global finance in ten years. Invest in cross-chain bridges, wallets, IDs/admin tools…”
In fact, Selkis also predicts how high various crypto assets can scale, given enough time.
9/ How high can we go?
BTC as an Investment Equal to Gold = $200-300k
ETH as FAMGA shares = $10-20k
DeFi at 10% of banking market cap = 20-25x
NFTs -> almost limitless application potential– Ryan Selkis (@twobitidiot) January 9, 2022
Messari founder used these findings to question Why should investors worry about current market conditions? Here, it is worth noting that Selkis is alsodvised,
“There is no leverage. Reserve for taxes. Never short”.
However, the market is still in a state of extreme fear. Ergo, the foregoing is understandable. On one side of the Atlantic, crypto holders are worried about how a potential Federal Reserve rate hike could affect their positions in the long run.
On the other side of the world, the outbreak of violence in Kazakhstan and energy problems has hit the sentiments of both Bitcoin miners and investors.
I Sing the Body Electric
Bitcoin could fall and investors might feel like the world is coming to an end. However, Electric Capital’s Developer Report for 2021 highlights the importance of miniaturization. The report notes that by 2021, more than 34,000 New developers have contributed code to open source projects. Regarding Bitcoin, the report stated,
“Bitcoin has over 100 new developers joining its ecosystem every month. Bitcoin has an average of over 600 monthly active developers as of December 2021.”
In essence, there are plenty of reasons for hope.