As the end of the year continues to creep up, has the hype finally “officially” left the world of cryptocurrency?
Our Lead Crypto Trader, Sam Shames, took to the mic this last month during the Crypto Intelligence Conference in Las Vegas to harshly differ. If anything, now more than ever, traders should be aware of crypto — not only what it is, but why it’s so important.
Sam takes the time to deconstruct and then reconstruct the market, and shows why it’s relevant by comparing it to something YOU are already familiar with — the stock market.
But why should we even care about crypto?
To briefly summarize it: geopolitical uncertainty, destructive central banks, debt burdens, and an emerging asset class. Sam believes that asking why you should care about crypto is akin to asking why you should care about the internet in the early 90s.
Bitcoin has historically “crashed” 50%+ multiple times. We’ve all seen it courtesy of the headlines. However, the long term trend remains up. Believe it or not. Just check out this chart…
Historically, the crypto market could be compared to the Nasdaq bubble of the 90s. People had a difficult time valuing new technology. People have a difficult time valuing things they don’t understand after all. Sam’s conclusion? These things take time, and while history may not repeat… history does rhyme. This time the technology AND the underlying markets are being developed simultaneously.
For many people though, it’s still difficult to wrap their head around the crypto world — Sam understands that. So he takes the time to explain the similarities between cryptocurrency and the traditional markets. Bitcoin and Ethereum are the “majors”. Bitcoin is like the U.S. Dollar and Ethereum is like the Nasdaq.
The direction of these two has a large effect on the direction of altcoins. Altcoins, which are anything other than Bitcoin, will trade relative to the “indices” with higher percentage moves. It’s similar to small-caps within an index. They can be grouped similar to traditional stocks (i.e. energy, tech, financials, etc.).
Given the historical similarities, while Sam is bearish in the intermediate term, he believes once the structural market issues are resolved and the underlying tech reaches mainstream… we’ll all be looking at our next Internet.
If you want to see how the crypto market pans out either short term or long term, join Sam and our other Crypto Trader, Taylor Letterman, in our Simpler Crypto membership. Grab a trial HERE.