I’ve been in the crypto market since 2017 when Bitcoin was trading at $4000 and Ethereum was trading around $100. These prices at first glance were high, especially not knowing what either of them were. Fast forward to 2022 and a $42,000 Bitcoin and a $3,200 Ethereum look cheap. Let me try to explain why.
The major difference between 2017 and today, is that countries, banks, and institutions are buying crypto. See how much companies are holding here and which banks are buying bitcoin here.
But the reason I’m buying NFTs on both the Ethereum blockchain and the Cardano blockchain is because of the momentum the entire crypto space is getting from those big players. So if you don’t know what an NFT is or you think it’s ridiculous this is how I’ll explain what one is.
A Non-Fungible Token is a token that can not be duplicated issued on a blockchain. A lot like how an artist creates prints of a 1/1 piece of art and numbers the back of each print, let’s say 100/100 prints of an original piece. Those signed prints would be a lot like the digital NFT that only you own in your wallet.
If that’s hard to follow, maybe think of it like this. You’re playing a video game that sells you a unique weapon that shoots cookie dough at people. The game developer only made 1 of them, and you want to be the only gamer that has it, with NFTs that’s possible.
So the reason I’m buying some NFTs is because of the idea of digital scarcity. I’m in the belief that as the 20’s come to an end, and we’re in the year 2030, most of our business and shopping will be online or in a metaverse. The writing is on the wall, and as AI and robotics are entering the marketplace this decade the internet and the internet of things (IOT) will explode.
I picked up more CNFTs than NFTs though due to the high gas fees on Ethereum. Cardano fees are fractions of a dollar compared to Ethereum fees being hundreds of dollars. Ethereum 2.0 is a little late in development when they officially move to proof of stake like Cardano, but until then I’ll be using ADA over ETH. I hold both assets, but when the ERC-20 converter being developed by Singularity NET (AGIX) is on the Cardano main net, I will be taking my Ethereum tokens in MetaMask and converting them on to the Cardano blockchain in my Daedalus or Nami wallets. I just believe Cardano is superior technology.
As the market moves downward, right now we’re experiencing a 40% down trend from all time highs, certain NFTs will hold their value in their native assets. One trick is to take profits in USDC or Tether and yield 9% on your gains as you watch the market fall, but another trick is to buy some NFTs in a popular project with a healthy community and possibly double your investment. Though this isn’t financial advice, just financial opinion, I think that NFTs aren’t going anywhere and healthy projects will keep their value and even gain over time.
I’ll conclude by saying that if you’re reading this today, you’re not too late. It seems as though things are falling and you are getting an opportunity to buy in at a good price. You just have to ask yourself what kind of investor you are? Are you buying to hold until you retire? Then sign up for iTrust capital for a Roth IRA. Are you buying to hold until next year or next month? Download Voyager to buy and sell crypto and pay the IRS short term capital gains tax at 25% or hold a little longer for at least two years, and pay them 15-20%.
Download the Voyager app and trade $100 to get $25 of free Bitcoin.
Use code WV6ZUB or this link to claim your BTC:
https://voyager.onelink.me/WNly/referral?af_sub5=WV6ZUB
If you have any questions or comments drop them below.
