Throughout 2020, we saw a consistent flow of news about legacy finance, major investment companies and large corporations looking to enter the digital assets industry. The value proposition for investing in Bitcoin (BTC) and other digital currencies started to move beyond just a store of value or thinking of Bitcoin as a commodity like digital gold.
In 2021, we’ll see the market’s understanding of Bitcoin maturing even further. The narrative will shift from a store of value to a powerful and appreciating currency. In 2020, Bitcoin was a commodity that institutions felt pressure to own. In 2021, Bitcoin and crypto will morph from a curiosity (2017) to a commodity (2020) to real money (2021).
Related: What lies ahead for crypto and blockchain in 2021? Experts answer
The dramatic reduction of the dollar’s purchasing power during the COVID-19 pandemic will stay with people for a long time. Depreciation has a psychological effect, one that MicroStrategy CEO Michael Saylor calls “financial energy.” The experience of watching purchasing power vanish is a drain on people’s emotional and financial energy.
Heading into 2021, consumers and investors are looking for ways not only to protect their purchasing power but increase their peace of mind. Consumers want sound money. Bitcoin and cryptocurrencies can make people feel powerful.
Updating Saylor’s concept, I call this psychological effect “Crypto Chi,” for the eternal circulating life force that exists in everything, according to Chinese philosophy. Crypto can act as something that enhances your financial life and overall health.
Investing and using crypto can reconnect people to the notion that they control their destiny and can harness and channel their energy (whether that is in the form of money, actions, relationships, etc.) in positive ways.
The idea that Bitcoin is digital gold is becoming obsolete as it reaches beyond its 2017 high. By making that leap, Bitcoin becomes the catalyst for a new idea — that fiat currencies will have digital cousins. It’s possible that major fiat currencies like the U.S. dollar, euro, yen, British pound, Swiss franc and Australian dollar will have a group of digital cousins trading in the cryptocurrency market. In the foreign exchange market, daily turnover is roughly $6 trillion per day. It’s a massive market relative to crypto.
This idea of crypto increasing personal health and financial power can lead cryptocurrency investors to think beyond just Bitcoin. Just as kung fu master Bruce Lee had a wide variety of ways to fend off an attack, investors now have a variety of digital currencies to invest in to protect their purchasing power and, ultimately, make their lives better — not just materially but spiritually as well.
Bitcoin, Ether (ETH), Dash and Bitcoin Cash (BCH) are used as payment methods in the emerging market world. Contrary to popular belief, we see governments taking a positive outlook toward cryptocurrencies. If 2021 is a more challenging economic environment than 2020, governments may look to crypto to help their citizens in a way they can’t. That could be why the director of National Intelligence recently urged U.S. regulators to create a more favorable environment for the expansion of crypto in the United States.
As you delve into crypto research, you can see the vast potential. For example, if you research how Bitcoin, cryptocurrencies and decentralized finance can empower people, you will see a wide variety of opportunities. For example, the big technology companies — Facebook, Amazon, Apple, Netflix and Google — are like mature redwood trees in a crowded forest. How much bigger can they get? In contrast, the altcoin world is like a bright green shoot popping up through fertile soil created by the Bitcoin rain. They are just getting started, and only the sky is the limit.
Technology is now intricately tied to finances, which, for better or for worse, has a deep impact on our lives. When our idea of money can be elevated to a spiritual level, we can see just how important it is to invest in the things that bring us joy.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Title: Crypto Chi: The future (and energy) of money and technology
Sourced From: cointelegraph.com/news/crypto-chi-the-future-and-energy-of-money-and-technology
Published Date: Mon, 18 Jan 2021 14:41:41 +0000
John Diaz– Stocks Market
I am John Diaz and I’m passionate about business and finance news with over 11 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind topmagazinewire.com with a vision to broaden the company’s readership throughout 2019. I am an editor and reporter of “Stocks Market” category.