News broke today that the first unicorn in crypto has emerged!!
A "unicorn" in any industry is any company that has reached a billion dollar valuation. What does it mean for cryptocurrencies now that we have a unicorn amongst us? I have a couple different takes on that.
1: Not Much
And I mean it. Sure, it's a landmark for the ever growing industry. I don't mean to diminish how far we have come to make this possible for Coinbase. I'm looking to how far we will go. Take a look at this infographic I'm sure you've seen floating around.
I firmly believe that Bitcoin will overtake gold (at a minimum.) And yet, bitcoin is a measly 41 billion. (lol right?) EDIT: (As of 08-11-17 according to www.coinmarketcap.com, bitcoin's market cap is at 57 billion. Take that, Larry Page.) Assuming that it does just that, and becomes the #4 asset class, we will have more unicorns than we know what to do with. That also doesn't include any altcoins or related industry growth. The excitement spreading regarding this unicorn's emergence puts into perspective just how far we have left to go.
2: A Whole Lot
I know. "But Crypto Rick, you just said that it doesn't mean much?" Yeah, well it still doesn't. The universe is a crazy, chaotic place. On a large scale, big picture point of view, it doesn't mean much. However, bitcoin is in a critical position; teetering over the cliff of mainstream acceptance. 2017 has shown an explosion of growth so far, with so many new investors and new money rushing in. Each headline (good or bad) can cause major market movements. Early adopters have the cushion of their ROI's to deal with volatility, but this new money doesn't have that luxury. As for me personally, the volatility doesn't bother me because I'm in this for the long hall, but for those that are putting in more than they can really lose, or those that don't have stomach for 20%+ drops, it can cause the market volatility to only increase. News of the first unicorn may trigger new investors, individual and institutional, to enter in the market. This drives the price up, and we start to see a domino effect. The inexperience in the crypto-verse, combined with the experience of the market makers, we could really see large price movements in small amounts of time, making almost every headline worth taking note of.
Let me know what you take on it is? Other than by watching the candlesticks, I'd love to know your reactions to this news.
- Crypto Rick (C-137)