State of the Market. Buying Opportunities at ProBit Global?
The crypto market has been all but predictable these last two quarters — Elon Musk tweets leading to DogeCoin pumps, El Salvador elevating BTC to legal tender, a massive crypto sell-off, and varying regulatory pressures.
It would appear widespread FUD and panic selling as a result of China repeatedly banning crypto can safely be added to the list.
Arthur Hayes chips in his two cents regarding perceptual panic surrounding the potential market impact of a widespread Tether crash.
ProBit Global boasts over 600+ coins based on an array of blockchains across the globe featuring a wide variety of disruptive projects in all corners of the market for portfolio diversity. We put together a list of 10 promising altcoins housed on ProBit Global that continue to grow by leaps and bounds in their respective categories to get you started on the right foot.
With all eyes locked on Bitcoin, as it is strapped across headlines for numerous reasons, altcoins have been overlooked. There has been incredible growth in altcoin value throughout 2021, quietly proliferating and producing crypto millionaires.
BTC still remains the market benchmark and a core element of any respectable portfolio despite the recent pullback stemming from several key contributing factors.
Environmental impact of PoW
There has been an incessant clamor from traditional media commentators regarding the supposed environmental ramifications of Bitcoins upkeep. Holders of this view often state the costs of upkeep outweigh any benefits accrued.
Tesla CEO Elon Musk debatably had a prominent role in the price crash, who, up until recently, was a seemingly unwavering proponent of Bitcoin. Thus, it caught the world by surprise when out of the blue, Tesla began refusing BTC payments, citing its high carbon footprint and energy consumption as the principal catalysts for this decision.
For someone trying to get us to Mars, it is hard to believe that before accepting BTC as payment for Tesla vehicles, he overlooked such a fundamental aspect of Bitcoin. Elon knows he can move the needle and is not afraid to do so.
The energy consumption narrative that he and other Bitcoin critics have latched onto may also be incorrect. If anything, it fails to recognize the difference between energy consumption and carbon emissions.
For a deep dive into this issue and how Bitcoin may nurture a greener future, give this a read.
Regulation in China
China exacerbated the depth of the BTC value plunge with their stance reiteration regarding Bitcoin. Financial institutions and payment companies were barred from providing crypto banking services in China since 2013.
This was not hard-hitting news, but unfortunately, given the volatility of Bitcoin and despite it becoming more stable year after year, did not aid in the recovery.
Regulatory concerns in the USA
President Biden envisions a robust and rejuvenated IRS, and with that vision inevitably comes stricter reporting rules. The announcement of reporting requirements for transfers of over $10K, announced in a recent report from the US Treasury Department, made it easier for the government to track the movement of digital currencies; as expected, this was not received well by all.
For further details regarding the recent correction and surprising catalysts, check out this must-read.
The long-term outlook
There are a vast amount of protocols that not only boast proven use-cases but also leverage their respective distributed ledger technology (DLT) to remediate real-world problems.
DeFi solutions in particular have garnered growing institutional and retail interest fueling the crypto space and ETHs value. Some describe DeFi as a “parallel banking system” and is still up over 2,580% since last year, even after the broad market crash.
Perhaps the most convincing development in the crypto space is the sheer number of reputable entities that now have a horse in the race.
Goldman’s growing presence, global banking behemoths experimenting with CBDCs, and hedge funds allocating increasing sums of capital to crypto projects — interest across the broader markets is heightened. It’s no wonder Goldman has gotten more involved; their clients likely see current prices as a more palatable entry point to crypto.
A recent report by The Block on crypto and blockchain venture funding revealed a whopping 497 deals completed for a total of $6.2B across private investments in Q2 2021 alone, highlighting the enormous amounts of early-stage capital looking to land the next crypto unicorn.
Visa, another household name, partnered with California-based fintech start-up Tala this year to further promote crypto as an alternative for the unbanked. We saw the potential of this in the Philippines with Axie Infinity earlier this year as the ability to secure a location-agnostic income source can significantly alleviate financial burden during difficult times.
And yet, despite the jarring amount of institutional interest, rapid growth, practical application, and technological development in the space, headwinds remain. With real-world adoption already occurring in a number of projects, a visible decoupling from Bitcoin may start as alternative digital assets thrive.
As these projects mature and prove their worth through real-world application, businesses and possibly even governments may leverage DLT’s unique qualities to solve problems deemed initially unsolvable. The legitimacy of the cryptocurrency asset class will only be further solidified from here on out.
It’s a better time than ever to be a holder.
