The Crypto Ecosystem
Many still do not see what is happening, and the main mistake is that most are just thinking of cryptocurrencies as investments like in the stock market, but that vision is absolutely wrong long term.
Crypto is the new way to store value and trade between individuals… is a process where all wealth is gravitating from the fiat currencies to the cryptocurrencies. The price of crypto will only go up for the next years but it does not mean you will get more in the long term, it just means fiat is losing value every single day, slowly, painfully…
Imagine crypto like the whole world bank accounts and savings accounts and so on… that whole ecosystem is being filled… daily. Old money is going from the old system to the new ecosystem and then it stays in crypto forever… it grows there, moves there… from one cryptocurrency to another, from one token or Dapp to another… from one address to another… and keeps growing.
Today, taxes can not be paid in crypto yet… and many business do not want to accept it due to their governments not being clear about how to treat crypto… but you will see how slowly it will evolve and like most people wearing masks today due to some virus, boom!, people will realize that all that cash in old bank accounts is useless and will run to crypto but paying a huge prime for being the last ones… at the end of the story, banks will keep all the cash… useless cash, probable governments will take the loss as usual. When people “buy” crypto today they are actually getting rid of cash… money that is not programable, money (their daily efforts is some cases) that is just doing nothing, when you enter the ecosystem, savings grow, enter liquidity pools, fund new projects and eventually, will be used to trade between individuals in blockchains that guarantee ownership, transparency and so on…
It is quite funny, specially when people feel safe trading for tokens that replicate US dollar or other fiat currencies… because those will actually replicate the loss of value… when Bitcoin will be worth 1 million dollar it will be obvious that a million dollar is not, will not be, what it was, anymore.
This is not financial advice at all, it is just an statement from an observer from the early days of Bitcoin… who is just living his life in a constant awe and loves to see how everything he saw is slowly unfolding exactly the way it was predicted many years ago. Life is almost the same in many aspects, but today there is a chance to lock the fruits of your daily efforts and avoid those efforts being diluted in fiat currencies printed by governments who care more about being reelected than betting for a sustainable growth of their citizens. Enjoy the ride and move to fiat only what you are ok to lose.