I've been in crypto space since 2013 and STEEM since it's infancy in May 2016. While it's a "bloodbath" right now in the crypto markets, I thought it would be good to pause and share with you why I remain bullish.
First...Define Your Time Horizon
Time, in the cryptocurrency space, is different. A month is like a year...so much development, FUD, hacks, FOMO, ICOs, regulation. Also, when your portfolio can go up or down by 100% within a single month, it gets hard on one's nerve.
I have to admit, I'm not a trader and I can't speculate successfully about where the price will go from week to week...but I know where this spacecraft is heading over the next 2 to 5 years.
Don't get me wrong, there is a time to get profits or to buy back in, I've just been terrible at making those choices and after failing more than once, I decided to stand back, Hold On for Dear Life and plan for the launch towards the moon.
2017 Bitcoin Went Mainstream - 2018 Bitcoin Goes Institutional
It hasn't yet been recognized officially but blockchain tokens and currencies are an asset class apart from any other. Legally right now, many countries are trying to fit a square peg in a round hole by classifying it as a "commodity" or "equity".
That is temporary in my opinion. There will be a time when internet tokens powered by the blockchain will be an asset class recognized by financial institutions and they will have their place within a certain style of portfolios... most likely in the "high risk" section.
Institutional Money is what's coming for crypto. When strong custodial services will be made available by large institutions like JPMorgan or Goldman Sachs it's only a matter of time before this baby goes to the moon.
The Three main hurdles — regulatory uncertainty, lack of market infrastructure and institutional-grade data sources — prevent institutions from participating in the cryptocurrency market at scale but work is being done to make it possible.
The word on the street is that significant additional institutional money is being amassed and is waiting for the right conditions to enter the market — and expected to start doing so this year.
Conclusion
What will it mean for projects such as STEEM and other alt-coins? I am not completely sure to be honest but if history teaches us something, it teaches us that wherever Bitcoin goes, the rest of alt-coins eventually follows.
Are you ready for what's coming?
Photo by Andrew Ruiz on Unsplash