Literally, cryptocurrencies are the talk of the town. Every mainstream media source praises cryptos to the skies, saying crypto coins are inflation hedges or better investments than real money like gold and silver. Discussions about which meme coin is the next hit with new coins becoming more and more bizarre. If you say something about crypto, answers about what the next big deal will come immediately. Even hairdressers now give crypto advice and explain how to invest and what to watch out for.
As the saying goes, when hairdressers and shoeshine boys are giving you investment tips, it’s time to sell.
Please don’t misunderstand, we at Naturaldeposit also believe that cryptocurrencies are a disruptive technology that definitely has a future. How this will look, can only be speculated. The fact is that from the government side regulations will come with the pretext to offer investor protection, but at the same time, the thinkers of the nations of course want to collect taxes on the profits generated by crypto speculation.
Yet it is shocking that some meme coins now have a market capitalization in the tens of billions of dollars.
This brings us nevertheless to the comparison to the dot.com bubble.
At that time, just about any company that was doing anything on the internet led to stock valuations that were way beyond anything. The popping of the bubble brought investors and speculators back down to earth at that time. In the end, the Internet became bigger than ever and companies that really had a solid base survived and created huge value for investors.
This is exactly what we could see with cryptocurrencies. We do not think that the whole crypto field will disappear, but that one day the field will be cleared and the best blockchains will survive.
Just like the Internet, it could be the final breakthrough.
This is exactly what we could see with cryptocurrencies. Since meanwhile seemingly every coin is highly praised and the topic is now part of the agenda of mainstream media, the investor’s sense could slowly start ringing.
But as they say, the best investors are those who go against the mainstream narrative and spot opportunities early.