It’s Matt here. By the time you read this post, we will be right in the thick of The Merge.
I’ve given you my thoughts on shorter-term crypto plays, but what can this mean for the future of crypto and currency in general?
As a trader, we focus on short blocks of time. We move in and out of markets. And the best of us hold onto our gains with steely determination.
Trading can keep us safe and in control of our cash, especially on crazy days like the 5% Nasdaq drawdown day we had this week.
That said, it helps to know what’s coming in an overall trend. It helps feed your instincts for what the hive mind will do next.
So let’s get to the buzz on what The Merge could mean for the future of our wallets, digital and otherwise…
The Big Picture of Cryptocurrency
When I try to imagine the future, there are a couple of key principles I keep in mind. Trends are part of larger patterns that tend to repeat.
And what you see happen on a micro level can definitely happen on a macro level. Here are a couple of ideas to think about when you imagine a post-Merge Ethereum world…
The Runner Up Often Wins The Race
People old enough to remember, or keen enough to research it, know that Facebook — Meta Platforms Inc. (NASDAQ: META) — wasn’t first to the social media market landscape. A now-forgotten network called Myspace was.
And Instagram came first … but now look at TikTok — it’s winning the race. So, while Bitcoin (BTC) remains the crypto leader because it was first in the category, in time, Ethereum (ETH) looks like it’s setting itself up to be more useful, efficient, and adaptable.
In the business world, you adapt or die. You have to be nimble and give the people what they want (and/or need) when they want it. ETH looks poised to do that. It has the hallmarks of an underdog-turned-leader.
But even if it doesn’t, there’s still a large possibility for success. After all, Coca-Cola Co. (NYSE: KO) and PepsiCo Inc. (NASDAQ: PEP) still rock the same market.
You Don’t Have To Reinvent The Wheel To Capture Large Market Share
When people want change, they tend to imagine something drastic. We get frustrated with the boom and bust cycle of the current monetary policy and we think, what if we just invented our own currency?
Radical innovation is a great thing. It’s creative, but ultimately, everything works better when it’s integrated. When we work with each other, we create better things than we could’ve on our own.
The Small Cap Rockets Chat Room wouldn’t have come together without my trading buddy Bryce Tuohey. AMTD Digital Inc. (NYSE: HKD) play-by-play anyone? And the Crypto War Room wouldn’t be the same without multi-millionaire trader Kyle Williams at my side.
You have to let yourself and your work integrate with another system to build something even better than we initially imagined. Remember guys, cryptocurrency is one form of currency.
So while some continue to worry about how decentralized crypto can stay under the specter of potential crypto regulation, I’m not really that concerned. As Axios detailed in its “what it took” section, the amount of consensus it took to make The Merge happen is quite democratic in nature.
In the future, I wouldn’t be surprised if traders, investors, and consumers alike appreciate that Ethereum has the safety and backing of some Federal regulation coupled with the checks and balances of a decentralized framework.
Something big is on the horizon. I just feel it. But those feelings come from well-honed instincts based on tons and tons of research.
Kyle and I are tirelessly dedicated to the crypto markets. Something’s brewing.
If you want to stay in the loop with all the best alpha that just doesn’t fit in an email, and get an opportunity to ask us your questions live, join us in the War Room — see you there!