Calaxy Co-founder 3 Facts You Need to Know Before the Next Bull Market

Calaxy Co-founder 3 Facts for the Next Bull Market

Author | Solo Ceesay

Translation | Huo Huo

Solo Ceesay, CEO and co-founder of Calaxy, recently expressed his views on the chaos and uncertainty in the cryptocurrency market. He emphasized the importance of clarifying key points and identifying what is crucial for investors in this ever-changing market. The following is the main content:

• An overview of the top 12 Bitcoin ETFs worldwide ProShares takes the lead, holding over 35,000 Bitcoins.
• Wu said Zhou’s selection The Federal Reserve did not raise interest rates, Mt Gox repayment date postponed, Tether crazy purchases of GPUs, and the top 10 news (0916-0922).
• Bitwise has withdrawn its application for a Bitcoin and Ethereum market-cap-weighted ETF.

Even beginners with zero knowledge know that the only rule applicable to the cryptocurrency market is that there are no rules. Even the smartest people in the world cannot surpass the chaos of the digital asset world. One minute, Michael Saylor and Microstrategy may be discussing their latest billion-dollar Bitcoin purchase transaction on CNBC, and the next minute, Jim Cramer may tell the United States that he will never touch Bitcoin, but just a few weeks ago, he referred to it as digital gold. Does this sound crazy to you?

Due to the price consolidation of assets for most of this year, the market has been quite dull. Nevertheless, the hope for the Federal Reserve’s mythical “soft landing” and the upcoming Bitcoin halving have made the Web3 community drool over many upcoming life-changing opportunities. Ignoring the differences caused by changes in market sentiment in a greedy situation is foolish.

Whether it is companies like BlackRock seeking to issue ETFs to commercialize exposure to cryptocurrencies, the adoption of blockchain technology by enterprises, multiple IPOs, the rise of artificial intelligence, or attempts to strengthen regulation, discussions surrounding the digital asset category have never been so abundant. That is why you need to understand three key issues in order to fully leverage what is about to happen.

01. Following the smart money is still dumb money

Regardless of the target market, one of the most common mistakes potential investors make is the habit of following others’ critical thinking instead of developing their own critical thinking skills. Most investors prefer to follow others’ investment decisions rather than analyze for themselves.

This is not to say that seeking guidance from more experienced individuals is a problem. However, it is important to remember that finances, goals, and risk preferences vary from person to person. Blindly following anyone’s advice, regardless of who they are, is bound to result in trading losses. On the contrary, cultivating the ability to discern asset fairness and market value allows you to take advantage of any arbitrage opportunities that exist in any given market, and this is the right path to take.

During prosperous times, it is common for novice investors to become victims of scams. Whether it is due to personal security issues resulting in complete loss of funds or being deceived and investing heavily in meme coins that experience pumps and dumps, it is important to remember that there is no such thing as easy money. Equipping yourself with tools to properly assess the feasibility of an investment is the key to achieving financial freedom.

02. Cryptocurrency Market Cap is Small

As of the time of writing this article, the total market capitalization of cryptocurrencies is hovering around $1 trillion. From all aspects, this is an astonishing number for an asset class that has not yet been widely recognized by some countries’ elites. However, compared to most other asset classes, it appears to be relatively small. In context, the market capitalization of the US stock market is about $47 trillion, and the market capitalization of just Apple Inc. ($AAPL) is $3 trillion, approximately three times the entire cryptocurrency market.

If cryptocurrency successfully updates our outdated financial system and achieves financial inclusion with the least developed regions in the world, the potential benefits are undeniable. For example, the progress we have recently made in developing Bitcoin spot ETFs will significantly increase opportunities for ordinary people to gain exposure to cryptocurrencies without the risk of self-custody.

There is a significant difference in the global perception of digital assets. That is to say, we see more open attitudes towards cryptocurrencies in freer financial markets overseas, such as in the United Arab Emirates or various countries in Latin America, while many Americans feel hurt because of certain propaganda aimed at preventing them from participating in the cryptocurrency market.

A study by the Pew Research Center shows that 75% of Americans lack confidence in the security and reliability of cryptocurrencies, which clearly contrasts with the rapid price fluctuations. This also reveals the potential conflicting incentives that may arise in the depreciation of the US dollar and the constantly changing geopolitical landscape.

03. Utility

Perhaps the most significant change that occurred during the previous market cycle is the influx of a large number of realized use cases. NFTs have achieved overwhelming success and adoption in the fields of art and ticketing, and world-renowned brands and countries such as Gucci and El Salvador view cryptocurrencies as legitimate currencies. Web3 is no longer a potential future but a happening present.

The various breakthroughs in decentralized technology have largely addressed the initial limitations of many decentralized protocols. The emergence of proof of stake and its numerous derivatives allows builders to put decentralized technology into the hands of consumers and greatly expand its applications. While most degens (gamblers) believe that the world of distributed ledgers is a “winner takes all” situation, it now appears that the broader Web3 community is interested in finding ways to build bridges and strengthen collaboration, which is an important part of mass adoption.

04. Conclusion

We are on the brink of the largest wealth transfer in human history. The essence of blockchain is to create a fair world where no one becomes a victim of abuse of power.

The creator of Bitcoin, Satoshi Nakamoto, dreamed of building a more financially inclusive world where everyone can participate. Although he could not imagine how everything would unfold in his wildest dreams, he would surely be delighted to see the economic and lifestyle benefits his technology has brought to many people around the world becoming a reality.

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