Billions Still Flowing Into Cryptocurrency
The bear market is alive and well it seems. This is a situation that might last a while. After all, markets do what they do. Rarely is there any logic to them.
While markets are usually an indication of very little, the real money tells the story. In this realm, this is Venture Capital and assortment of other funding mechanisms. The question is what is going on in this realm?
Here is where we might be able to separate cryptocurrency's future from the fluff. While the FUDsters would have us believe that cryptocurrency has no value, we see billions flowing in that could tell a different story.
So who do we believe?
Marc Andreeson Knows
Silicon Valley, for all its ills, does have some of the most insightful people in the world. We cannot tell if it is their ability to predict the future or create it. Either way, they tend to know where things are going.
For this reason, listening to someone like Marc Andressson is a good idea.
Perhaps you heard of this famous quote:
The main partner in Andreeson-Horowitz, one of the leading Tech VC firms appears to be still going all in regardless of the setback in the cryptocurrency markets.
That is a lot of change to be laying out in a bear market. The key to understand is guys like this do not look at bulls or bears. Market conditions are secondary to them. They are long term investors meaning that a couple years swing in the markets means nothing.
When we consider the fact that most of their VC contracts are 8 years, this show the timeline they are operating upon.
Imagine if we adopted that same mindset ourselves.
The Future Is In Development
One thing about Venture Capital money, it is not speculation on market activity. Funding of this nature is about finding business ideas and developing them. It is simply how they operate. In short, is the market speculation before something goes public for people to speculate upon.
Cryptocurrency is a hot item. We saw a record in VC Capital flow in during 2021. This totaled a hefty sum of $30 billion.
That will pay for a lot of developers.
Here is where a bit of common sense comes in. We all know the VC game is high risk. There is no guarantee that these projects will work out. In fact, we know many will not. However, there are going to be some that do.
This is where we see the future of the industry.
Since we do not know which projects are going to succeed, we have to count on the fact that some are. When we see $30 billion roll in from Venture Capital Firms in a single year, there is a lot more than just hype.
Ultimately, Web 3.0 is attracting this money. These technology investors see the potential of the next generation Internet. It is something they are not going to miss out on.
Considering that many of these firms made their money from investments in earlier Internet projects, it is a safe bet they understand where things are going. Even if they are creating it, we might as well follow suit.
Ignore Markets
This is why the smart money ignores the markets. We know this realm is filled with fools. This is evident by how many are parted from their money.
We are part of the formation of an entirely new industry. Actually, if we think about it, what is coming is going to penetrate many different industries. The digital realm is only expanding. Since cryptocurrency is a central part of that evolution, it stands to reason things will be more advanced a few years from now. After all, we are much further along than just two years ago.
Markets go up, and they come down. Development, on the other hand, that is steady. When looking to the future, it is best to follow those projects that are implementing their vision.
Here is where markets often get it wrong.
Cryptocurrency gives us the opportunity to partake in successful development without being part of the VC world. Of course, this is a benefit since most of us are banned from that realm due to the inability to be an Accredited Investor. With different cryptocurrency projects, we can partake.
Of course, that means being able to weather the ups and downs that come with waiting for development to take place.
For this reason, do like the VC in Silicon Valley: put your money down and then come back in 7-8 years.
By then the industry will really be something to behold.
Article by @taskmaster4450le.
Posted Using LeoFinance Beta
