Bitcoin and Crypto: The Boom is Real but can it Continue?

Along came Covid-19 and real worries about the value of the fiat money in your pocket, especially when governments are needing to print so much of it. When you have a big pocket, and a big lifestyle (and there are many who do) then you worry about growing that value, or keeping it invested, or working for you.

 

You also see the value of people using digital money, in being able to transact with others via devices, without using paper or unhygienic coins and currency. 

 

But that’s only a small part of a bigger story... which is the advent and explosion of 'de-fi', or Decentralised Fiinance...

 

NFT by ade's press 2020

 

The Covid-19 situation has only given a boost to an industry that was already on the brink of catching fire again. Why? Because it’s brand new, it replaces custodians and untrustworthy banks with raw, technical code, and because tons of development and platforms are now doing ‘crypto-magical’ things. Not only this, but these projects are owned and run - securely, for the most part - by their communities, called Decentralised Autonomous Organisations, DAOs.

 

So... big investors start placing some of their holdings into cryptocurrency, including a (deflationary) asset like Bitcoin. People actually using de-fi and everyone else also invest more...

 

It all begins to outweigh the risk or likelihood of another crash. An escalation and adoption is unfolding right now, as this is written.

 

But is crypto a threat to governments? Not yet... In fact, it's providing a reserve and a boost for the economy in uncertain times. But governments should adapt and incorporate, if they are savvy and not reactionary. They are now researching their own digital currencies, which should fit in alongside. Companies as big as Facebook are too. They will be trusted, but never as far as decentralised currencies like Ethereum.

 

Trust is so important where money is concerned. 'Proper' crypto secures networks and prevents attacks. Will Facebook's 'crypto' project be hacked like its own data was? Blockchain is no tide easily held back by anyone anymore. Layers of trust now exist, but you must choose/research your blockchain and project... wisely. 

 

Decentralised finance has been growing thanks to blockchains like Ethereum and Binance Smart Chain, which are both growing substantially with their power to program smart contracts and generate value and returns. The latter is easy and cheap, but you need to check the audit of the project and consider some risk in centralisation, in that the company Binance is heavily linked to the BSC and its price of BNB.

 

NFTs are going mainstream

 

Add to this the icing sugar on the cake: NFTs. The killer app of tokens on blockchain is digital scarcity. This wave has the potential to push Ethereum etc. to outstanding heights this year, along with many other layer 2 and next-gen blockchains correctly primed to take the strain off the demand. We’re talking Binance Smart Chain and the BNB token, Polygon solution and the Cosmos token (ATOM) in particular. 

 

Are YOU investing? 

 

We have covered projects previously in this blog. Since then, prices have only exploded further. We expect them to go higher (but see our disclaimer at the bottom). Since our members here at Prizes Drop are doing similar, magical things earning our points on this site, completing our range of mini-tasks, we can only underline the trend once again. Bitcoin and Ethereum might be some of the things you’re swapping your points for.
 

Where to invest

 

So besides Bitcoin and Ethereum, you may want to swap some of them, and diversify further into BNB and various BSC projects. Look for those on BSC which are really working hard on their websites, have strong communities on Twitter, and are creating value for their tokens. The following project DEX(AMM) tokens look set to continue growth, and even go multi-chain:

- PancakeSwap (CAKE)
- BakerySwap (BAKE)
- ApeSwap (BANANA)

- CafeSwap (BREW)

- Venus (XVS)
 

Flash-crashes: Moments of Fear and Doubt

 

Every now and then crypto markets will flash-crash. Get ready to buy the dip or HODL on through. Many of these are pure FUD or over-reactions to news items which don’t actually contain any harmful information to the crypto sphere. Perhaps there will be some new regulation or taxes, but it won’t stop these projects or the technology from arriving. 

 

In short, this isn’t just a bull market reacting to Elon Musk, deciding to Tweet at a pretty obvious, bullish time anyway. This is a revolution in finance, which may well become the norm, and which means leading currencies like Ethereum will be a lot more valuable yet. 

 

Yes, we would say that the crypto boom will continue, and there’s still time to get on board. 

 

It’s just the beginning. Get ready for higher highs and higher lows.

 

April 2021

Disclaimer: nothing here is intended as professional financial advice. Always do your own research too. Cryptocurrency is still a volatile market and prices can fluctuate substantially.