The Pomp Letter: The Last Gasp from Wall Street
The cryptocurrency market is on the move. The overall crypto market has roared back to over $3.5 trillion in value. That’s about the valuation of some of the largest tech stocks today.
But it’s just a fraction of assets such as gold, real estate, or the stock and bond markets. Since cryptocurrencies offer decentralized tools outside of existing systems, there’s some pushback. Wall Street doesn’t care for bitcoin, which competes with fiat money.
Bitcoin was designed as a peer-to-peer digital payment system. But it’s also found investor interest as a store of value.
Bitcoin’s rising price and limited supply suggests far further upside in the years and decades ahead. And growing tools on bitcoin’s blockchain will allow for its use for transferring wealth.
Currently, the biggest impediment to bitcoin’s use as a monetary exchange is its volatility. Simply put, prices move around too much in dollar terms.
But as bitcoin’s price rises in dollar terms, it should become more stable. Prices should continue to rise thanks to higher demand from the issuance of 11 bitcoin ETFs. And bitcoin is weeks away from its halving, when the block reward for mining bitcoin is cut in half.
This may be the last chance for investors to cheaply invest in cryptocurrencies. The shift towards cryptos and away from traditional financial structures offered by Wall Street could lead to one last big rally.