The current bearish news cycle about China and Elon is temporary, like any news cycle. But this is not the end of the bull run. There is too much good news right around the corner. Here’s a snapshot of what’s to come and why it’s worth waiting for:
• This month – Bitcoin network implements the Taproot upgrade, laying the foundation for Bitcoin-native smart contracts and DApps. Expect to be reading about new progress in Bitcoin DeFi in the months and years ahead.
• July 2021 – Ethereum network implements the EIP 1559 upgrade, lowering transaction fees and drastically reducing supply issuance. This very likely creates a supply shock that drives Ethereum price up. Expect massive FOMO before and after this upgrade.
• Latter half of 2021 – ZKRollups and Optimistic Rollups being productized in major Ethereum DApps to drastically reduce transaction fees. Uniswap is already publicly beta testing use of Optimistic.
• Late 2021 – Institutional adoption news will continue to break and might include Bitcoin and Ethereum ETFs, updates on Visa’s Ethereum based crypto platform (announced last March), and much more.
• On-going all year – Inflation across the planet driven by pandemic monetary policy that is compelling trillions of dollars of global wealth to clamor for safe haven assets.
There’s a bright future just beyond this minor bump. China’s crackdown on crypto in advance of their launch of Digital Yuan was always expected, and their restriction on mining is great news for Bitcoin, reducing the mining concentration in Sichuan that has long been a concern among Bitcoin critics. As for the Elon sideshow, I’ve always thought the cars that Tesla employees engineer are better than the tweets their boss manufactures. The Bitcoin bull run started before Tesla bought and will continue after.
Keep calm and buy the dip.