Author | Solo Ceesay

Compiled by | HuoHuo

Solo Ceesay, CEO and co-founder of Calaxy, recently expressed his views on the chaos and uncertainty in the cryptocurrency market, emphasizing the need to clarify key points and outlining what is crucial for investors in this ever-changing market. The following is the main text:

Even beginners with zero knowledge know that the only rule applicable to the cryptocurrency market is that there are no rules. Even the smartest people in the world cannot surpass the chaos of the digital asset world. One minute, Michael Saylor and Microstrategy might be discussing their latest multi-billion dollar Bitcoin purchase on CNBC, and the next minute, Jim Cramer might be saying he would never touch Bitcoin, even though just a few weeks ago he referred to it as digital gold. Does that sound crazy to you?

With asset prices mostly consolidating for the majority of this year, the market has been quite dull. Nevertheless, the hope for the mythical "soft" landing of the Federal Reserve, coupled with the upcoming Bitcoin halving, has the Web3 community salivating over many upcoming life-changing opportunities. In a climate of pervasive greed, ignoring the implications of market sentiment changes is foolish.

Whether it's companies like BlackRock seeking to issue ETFs to commercialize exposure to cryptocurrencies, corporate adoptions, multiple IPOs, the rise of artificial intelligence, or attempts to strengthen regulation, discussions surrounding the digital asset category have never been more abundant. This is why you need to understand three key points to fully capitalize on what's about to happen.

01. Following Smart Money Still Makes You Dumb Money

Regardless of the target market, one of the most common mistakes potential investors make is to habitually follow others' critical thinking rather than cultivate their own critical thinking skills. Most investors prefer to follow others' investment decisions rather than conduct their own analysis.

This is not to say that seeking guidance from more experienced individuals is problematic. However, it's important to remember that financials, objectives, and risk preferences vary from person to person. Blindly following anyone's advice, no matter who they are, is sure to lead to trading losses. Instead, cultivating the ability to discern asset fairness and market value allows you to capitalize on any arbitrage opportunities present in any given market, and that is the way to go.

During prosperous times, novice investors falling victim to scams is common. Whether it's issues with personal security leading to complete loss of funds, or being duped into heavily investing in meme coins during pumps and dumps, it's important to remember that there's no such thing as easy money. Equipping yourself with the tools to properly assess the feasibility of an investment is the key to achieving financial freedom.

02. Cryptocurrency Market Cap Is Small

As I write this, the cryptocurrency market cap (i.e., total size) hovers around $1 trillion. From all perspectives, this is an astounding figure for an asset class that has yet to receive recognition from some national elites. However, it pales in comparison to the vast majority of other asset classes. For context, the market cap of the US stock market is around $47 trillion, and the market cap of just Apple ($AAPL) alone is $3 trillion, roughly three times the entire cryptocurrency market.

If cryptocurrencies successfully overhaul our outdated financial systems and achieve financial connectivity with the world's least developed economies, the potential benefits are undeniable. For example, the recent progress we've made in developing a Bitcoin spot ETF will greatly increase the opportunity for ordinary people to gain exposure to cryptocurrencies without the operational risks of self-custody.

There are significant differences in global perceptions of digital assets. We see more open-mindedness towards cryptocurrencies in freer financial markets overseas, such as in the UAE or various countries in Latin America, while many Americans feel deterred from participating in the cryptocurrency market due to some propaganda aimed at dissuading them, which is created to prevent them from participating in the market, given the rapid price fluctuations. This also reveals the inconsistent motivating factors that may arise from the devaluation of the US dollar and the constantly changing geopolitical landscape.

03. Utility

Perhaps the most significant change that occurred in the previous market cycle is the influx of a multitude of realized use cases. NFTs have achieved overwhelming success and adoption in the art and ticketing sectors, and some of the world's most prestigious brands and countries, such as Gucci and El Salvador, view cryptocurrencies as legal tender. Web3 is no longer a possible future, but a happening present.

Breakthroughs in decentralized technologies have largely addressed many of the initial limitations of decentralized protocols. The emergence of proof of stake and its numerous derivatives allows builders to put decentralized technologies into the hands of consumers and significantly expand their applications. While most degens (gamblers) believed that the world of distributed ledgers was a "winner-takes-all" scenario, it now appears that the broader Web3 community is interested in finding ways to build bridges to strengthen collaboration, which is a crucial part of mass adoption.

04. Conclusion

We are on the brink of the largest wealth transfer in human history. The essence of blockchain is to create a fair world where no one becomes a victim of abuse of power.

Bitcoin's creator, Satoshi Nakamoto, dreamed of creating a financially freer world where everyone can participate. Although in his wildest dreams he could not imagine how it would all unfold, he would surely be pleased to see the economic and lifestyle benefits his technology has brought to many people around the world become a reality.

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