The period between 2021 and 2024 May be a period of market segmentation for the cryptocurrency industry. How is it different from the previous four-year cycle? In macro terms, the digital market may have grown into a trillion-dollar market, but it’s still a baby market with a lot of potential.
Let’s take a look at one of the industry trends and investment strategies for the next four years.
Trend 1: Bitcoin’s dominance continues to decline and will decline further, with forecasts that it will decline further to 20-30% in the future. Bitcoin’s low dominance can make the industry profitable in many ways. For example, reliable applications with a unique foundation will emerge independently and decoupled from the “pie.” If that’s true, cryptocurrencies are in for a golden age.
Trend # 2: Stock listings are expected to be one of the major investment vehicles for the next four years. On April 14, Coinbase listed on Nasdaq, and Bitcoin peaked on the same day. Not all investment firms need to issue tokens to raise funds. The days of discouraging traditional investors from investing in the digital currency market are long gone. I see a lot of traditional venture capital coming in over the next two years. Another model is also emerging. Consider the “equity + token” co-investment model. In a possible sign of the new model, Chia is speeding up its IPO schedule.
Trend 3: Institutions remain the engine of the bull market. The year 2020 has only just begun, and the wave of established institutions is accelerating.
Trend 4: Legal compliance. If we want a bigger growth industry, we have to accept compliance. The market has reached a mature stage, it is inevitable to accept supervision.
Trend 5: Assets are the heart of the market. Investors need to consider what high-quality assets can offer them. What are your strengths? Listed or circulated? Meme coin will become history, the future is the stage of the strong.
Strategy 1: Blockchain infrastructure. Think about the big picture of the crypto market, find the key players, find the best team, such as the IPFS project.
Strategy 2: Encrypt native ecosystems. And the public chain to provide the infrastructure for innovation. Investors need to broaden their knowledge and find a true ecosystem of users.
Strategy three: key innovations. You have to keep up with the latest trends, analyze them, and ultimately develop new approaches. An attitude of confidence in the ultimate achievement.
The shock of digital currency makes a large number of people’s assets evaporate overnight, and a large number of coin speculators shrink their assets overnight. In fact, the way to participate in the digital currency market does not necessarily have to fry coins. All the digital currencies in circulation on the market are generated by mining coins. The cost of mining FIL coins under current conditions and prices is about a third of that of buying digital currencies directly. As long as the calculation force in hand every day there are coins to account!