2 Trillion It Seems Like Just Yesterday

in LeoFinance17 days ago

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For years we had hoped to hit a 1 trillion dollar market cap within all of crypto. We fell short of that in 2017 and it wasn't until this year we finally saw it happen! Just a few short months later that market cap doubled to 2 trillion which now puts it at about 20% of the capital that's invested in gold right now.

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What's Fueling these new levels?

Bitcoin is holding strong at over a 1 trillion dollar market cap. I always felt like we belong more so on the 40k level for bitcoin but we are now far from that. So what's fueling all of this and holding these higher levels?

It's a combination of a lot of things in which I'll go over next. What's important is to keep on top of these things and also deep dive into any new features crypto offers in the future.

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DeFi or Decentralized finance is a blockchain based form of finance that does not rely on any central authority such as a brokerage, exchange or bank. However we are starting to see banks trying to inject themselves into these systems by picking up stable coins such as USDT and USDC.

Platforms like CubDeFi.com offer a quick and easy way to swap and stake crypto for a small fee. No middle man just quick conversions which is what crypto is all about. Speed and the ability to move funds from one place to the other within minutes instead of days like transitional means.

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NFTs - Non-fungible tokens I wrote about what NFTs are here in this LeoFinance article

https://leofinance.io/@bitcoinflood/what-are-nft-s-and-how-to-create-your-own

In short they are tokens minted into the blockchain that are one of a kind and have full transparent backing to show proof that this is in fact the original. These have fueled millions of dollars in transactions. However they are starting to show to signs of slowing down as the fade is starting to fade out. That could quickly be ignited again via a famous artist or a cool new feature. I know movies and music artist are starting to venture into this territory and when we see fees reduced here in the coming months we could again see a major rally in this sector.

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Demand for desterilization are on the rise. While platforms say or think they are decentralized I haven't run into a single one that is truly decartelized as of yet. While there has been good progression towards this it's going to be very difficult to have a fully 100% decentralized platform. In any case 2020 showed us why we need these new forms of platforms and many people became fed up and continue to become fed up with the current social media platforms they are offered. We saw many accounts deleted, new details of how Instagram and others are spying on us, using people as commodities and selling our information and so on.

It's going to take a while for us to finally get away from these platforms but the moment has started. A lot of focus is now on crypto blockchains and social. It's a big reason why I hope we see Project Blank here from leofinance soon before another platform steps in or the demand of it starts to fade away before it's too late. Make no mistake to make Project Blank a success it's going to require a TON of work from not only the devs but also those using the platform.

What other factors do you feel are driving this rally?

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The demand for decentralization is only just beginning. So many more people will wake up soon and will inevitably pile into the crypto ecosystem

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I think it's unfortunate at the moment that people feel decartelized means they can complain about anything and everything. Most of those platforms are totally unwelcoming to most people unless you have the same political opinions lol. I hope that changes soon.

I see where you are coming from, not sure that it's possible to change that without you know... centralizing. Perhaps there will simply be topics of discussion that transcend political barriers, that's really all I can think of

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I think it comes down to the community. If you don't want to be bombarded with crap you have the ability to block or hide that person. It's a personal choice and not a choice the social media company makes. If someone is harassing you you should be able to block them as well. I feel like it's more about giving people the power to make their own choices instead of some large corp trying to tell you what you can and can't see. There should be some measures in place as well. There's just some things that don't belong on everyone's feed. But in a fully decentralized system I feel like it would just be spam, porn and illegal crap for the most part sadly.

You raise interesting points here, I think that there needs to be individual customization as well because only the individual knows what they want to have on their feeds. There needs to be some sort of middle ground between 2.0 and 3.0

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Just like in 2017, Bitcoin started to enter the mainstream consciousness, in 2021 we are starting to see crypto as a whole enter the mainstream. Bitcoin has reached a point where at least a large percentage of people have "heard" of it. The vast majority still don't know what it is but I would guess most of the people with money now do. The rest of crypto is starting to filter it's way into that consciousness. I think it will take another few years but it's coming.

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Totally agree with that. The biggest negative of all of this of course is how it becomes centralized because people with massive $$ can still hold massive wealth while those who don't are still kind of stuck. Not many people own bitcoin but nearly all of it has been mined. It's kind of a reason I'd like to see a new crypto come out that beats out bitcoin in the next few years and becomes more distributed at first. Or maybe it will take an all new direction. Perhaps everything will be crypto but each having it's own blockchain and token. You then become a part of it by owning that crypto so you have voting stake just like you would with a normal company and owning stocks. That's kind of how I imagine things in a few years from now.

I think that's kind of coming. But I don't think bitcoin is going away. I think it will just continue to grow until it basically is the global currency. I think at some point they will start trading it in Satoshis or some form. Maybe 100,000 sats will be called something different and they'll trade it in that. But I don't think that precludes many other cryptos from making their mark and it could certainly evolve into a pseudo-stock market. They will still have to figure out how to get value back to the "shareholders" though. I'm pretty sure that in the next five years there will be cryptos out there that we can't even imagine right now. Just like any other technology, the developments are coming faster and faster and headed in directions we can't even see yet.

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Yes..btc dominance is declining

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Only by a small amount It will still remain king for a very long time.

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Banks are simply riding on people using crypto to keep up with new technology. Likewise other people are becoming aware of crypto little by little and accepting it.

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