The crypto market looks bleak.
The Blockchain Ecosystem is littered with corpses.
Retail investors have been obliterated. And many big players that looked like market leaders, blew up in spectacular fashion.
Most investors have either left the crypto arena, or are waiting for another leg down. Even among professionals, the consensus is for a slow, gradual recovery.
"The crypto market needs time to heal and rebuild" - or so they say.
But that's not what's going to happen.
Here's why I'm extremely bullish on crypto in 2023.
It’s typical for people to believe recent events will dictate how the future will play out. This behavioral bias emerges from how we rely on our short-term memory to make real-time sense of the world around us.
This is called recency bias.
For all of 2022, crypto investors have experienced nothing but collapse after collapse, bankruptcies and even large scale fraud.
But 2023 will be nothing like 2022.
Here's why.
Like everything else, inflation runs in cycles.
We are now in a counter-trend rally. It looks like inflation is getting under control and is going to come down.
But so far, we've only seen the opening act.
The Weimar Republic is famous for its hyperinflation period.
By the end, the currency was not even worth the paper it was printed on.
For those that caught on to this inflationary trend early, and bought scarce, hard assets, it could have been a ticket to vast wealth.
But it wasn't as easy as it seems. It never is.
There was huge volatility with extended periods where the market went rapidly the other way, and it looked like inflation might be over.
Look at those crazy market moves. And you think only crypto is volatile?
These big movements higher with sharp reversals happened many times.
That's why it's so hard to hold a position long-term in such a scenario.
Just like with cryptocurrencies RIGHT NOW.
In the US, we went from sector specific crises (think dotcom crash or subprime housing crisis) to the ultimate fiat currency end game.
After endless money printing to paper over past crises, the bubble is now in government debt. We're facing a sovereign debt crisis of epic proportions.
This means there can be no more "kicking the can down the road" with more debt and inflating a new bubble in a different sector.
I‘ve already highlighted how the US government bond market is a ticking time bomb.
Of course, the Fed is acting like a tough guy pretending to continue to raise rates no matter what.
Just like they repeatedly kept saying that inflation is transitory and you have nothing to worry about.
Remember this: Politics is simply theater for the slave class.
It's only a matter of time until something breaks in the financial market and the Fed is going to flip and turn the printing press into overdrive.
And all of a sudden, cryptos will be back stronger than ever.
Cryptos are the only asset class that will 100% isolate and protect you from the collapse of fiat currencies. It‘s the only parallel system that can give you true sovereignty.
It will be the only lifeline for everyone, including central banks around the world.
That's why the Bank for International Settlements (BIS), the central bank of central banks, has just published a framework that will allow central banks to hold cryptocurrencies as part of their reserves.
In other words, even for central banks, all roads lead to crypto.
It's their only chance for survival. (But hopefully we‘ll flush them down the toilet too and go to a full peer-to-peer financial system.)
And you think crypto is dead?
LOL.
Now is the time to go heavy into crypto. Not just to bank big profits but to grow your entire net worth several times over in record time.
On the surface, it looks unlikely right now. But those who understand the game know it's inevitable and in the near future.
To sovereignty and serenity,
Marco Wutzer