The Crypto Industry seems to be strengthening, yet external factors are moving prices down in the short term.
And that is likely good news for those wanting to enter the space.
We have a new asset class that is just getting it's sea legs under it, but we have negative external headlines coming from all sorts of directions that mostly don't affect the underlying fundamentals of the industry.
That is likely creating a very good buying opportunity.
What do I mean exactly?
I mean that we have had tons of positive developments in the space over the past several months but all that is overshadowed by the lack of clear regulations, selling by the Mt. Gox trustee, as well as a few other external events.
Just off the top of my head, we have had new exchanges/apps coming out every couple of weeks that offer cheaper alternatives to current exchanges.
Plus many of these newer ones have proper licenses/registrations/exemptions that perhaps some of the older ones didn't have.
The purchase of Poloniex by Circle was a perfect example of this. That looks to be the first exchange that will be registered with the SEC.
We also have the Circle Invest app and the Robinhood App, as well as a couple others that hope to revolutionize the crypto mobile trading industry while offering fee-free trading.
We are also getting more and better use cases for cryptocurrencies.
Yes Bitcoin was dropped from a couple of its long time retail supporters, but that was only because the transaction fees were unsustainably high. Fees are now down roughly 97% from those highs and retailers are starting to pick it back up as a payment method.
Also...
More crypto hedge funds are popping up every week wanting exposure to the space.
More and more derivatives products are being created every couple of weeks as well, with the newest ones being created in Europe.
We also are getting more and more traditional investment products, related to cryptocurrencies, being offered by Grayscale Investments, similar to the extremely popular GBTC.
We are also slowly but surely getting more clarity on tax issues and regulatory guidance.
Also, every couple of days when I google Bitcoin, I see updates about new merchants accepting bitcoin, bitcoin cash, ethereum, or litecoin as a form of payment.
Use cases truly are increasing.
There is even a "crypto-back" credit card in the works where customers will receive 1% back of their purchases made with the card in the form of bitcoin or ether.
New college classes are being formed every semester focusing on cryptocurrencies, blockchain, and writing code, so our youth is being educated.
Bitcoin etc, have their very own segment on the CNBC Youtube page. Plus Bitcoin is mentioned every single day, usually multiple times per day on their extremely popular Fast Money show.
The underlying technology/potential is also slowly getting better.
Segwit is already being used at several exchanges, and the the Lightning Network is slowly being implemented and tested as well.
I am sure I am leaving many things out, but overall it seems things are progressing nicely, yet prices are off about 70% from their highs, which to me is the perfect set up to be buying into.
Pay attention to the underlying growth that is happening, while the price of the currency is mostly trending downwards.
At some point the strengthening fundamentals will start to drive prices more so than the negative headline of the day.
Stay informed my friends.
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