The Future of Bitcoin And The Financialization Of The Crypto-Economy

The Future of Bitcoin!

What does the “financialization of cyptocurrencies” mean? What am I talking about?

Most investors don’t yet understand what it means, but it’s likely to be the #1 most important influence on Bitcoin’s future.

In fact, this trend is probably the single most important trend in the entire crypto-economy, and not a single research analyst properly understands it.

I strongly recommend you take the 5 minutes to read, because this will completely change your understanding of Bitcoin’s role in the crypto-economy.
 
To understand the “financialization of crypto”, we must first look at the non-crypto world.
 
Every single one of you heard the saying that “Bitcoin is Digital Gold”. Sounds good, but do you really want that?!

One of the most popular Bitcoin books is even called “The Bitcoin Standard”, with a big fat image of gold bars on it. It’s the one I’m holding below here (although I think some key insights are missing, it nonetheless is a great book).

 

 

Think about it… Do you really want Bitcoin to be digital gold?

About ~5.000 years ago, Gold became the dominant currency, and it has pretty much always reined that position until the last millennium. 

I don’t want to bore you with every transition, but we do have to know where it has led. 

We have gone from gold to paper cash to debt instruments to ABS’ (the Asset-Backed-Securities like CDO’s and RMBS)’. We financialized every asset to a point that’s nearly impossible to comprehend. 

We have financialized money to the point that it feels near infinite. 900+ Unicorns and EV companies with a 100 billion market cap and 0 revenue. It’s all a result of the financialization of assets.
 

Now how does this relate to the future of Bitcoin? 

This is what you want to know.

Bitcoin indeed is like gold. A limited supply. A hard form of money. It’s great. And it being digital, makes it even “better”. 

Gold is physical, but again for as long people trust its valuable. There are many arguments to it, but that all doesn’t matter.

Bitcoin is digital gold. And most, not all, but most, like 99% of Bitcoin investors, care deeply about its price appreciation in USD terms.
 

There’s nothing wrong with that. We wanna make some money. It’s human right? 

Hey, we’d all rather be rich than poor!
 

But the fate of gold, will apply to Bitcoin as well. 

This applies to the future of bitcoin in 2 distinct ways:

1) We buy physical gold as a hedge in case shit hits the fan. This works on the assumption that if all the new money creates trouble, we return back to the most ancient form of tradable currency.

a row of gold bars

2) We assume that investors prefer ancient stable currency over developing new products to create more money out of thin air, thereby going 180 degrees against human psychology and human greed…

Ask yourself, based on your judgment of humanity; what do you believe is more likely to happen? Sound stability with no growth, or rapid growth with minimal effort?

How will this apply in the crypto world:

Prepare for the financialization of crypto. If you thought DeFi and staking and NFT trading was an ultimate use-case to make money with Crypto, think again. If you thought the metaverse was the place to make the most money in crypto, think again.

 
The same people that created the CDO’s and CLO’s and all these highly complex financial instruments, will do no different in the crypto-economy.
 
Yes, it might be decentralized. Yes, it might be more transparent. Although I occasionally doubt how well people really understand blockchain networks. But that doesn’t matter. The only thing that matters is the financialization of crypto, the financilization of the asset to keep pulling more money out of it.
 
That’s going to build one hell of an industry in the future.

What to look out for.

If you’re a long-term investor, you might have to watch out for this, because the opportunities to make money in this new economy will be absolutely insane. It’ll blow the Defi and staking profits way out of the water.
 
We have a few of these on our mind already, to be published in our next monthly report at Countach Research.
 

 
Because this Canadian company, led by one of the best in the field, is the #1 beneficiary of government-directed carbon credit regulations.
 
Imagine an oil company having to pay $80 per ton of carbon emission. A fee directed by government law. They will try to reduce their pollution. But what’s even easier, is simply buying carbon credits by the ton.
 
They might need carbon credits for 50 million tonne of emissions. That’s a $4B cost for just one company. And who do they buy these credits from?
 
Likely, the highest quality credits will be bought from this one tiny Canadian company, that has started growing like crazy already.
 
I’d gladly tell you a bit more about it. So below this video I’ll provide a link to the next video that covers this once-in-a-lifetime opportunity in carbon credits. I’m serious, you do not want to miss this one!
 
Thank you for watching and see you in that one!
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