Private bank owner says “everything is on sale” — Crypto will pay big in 3 years

As the crypto markets shrink, are the internet influencers right about a new bull run?

December 16, 2022
Private bank owner says “everything is on sale” — Crypto will pay big in 3 years
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Matt Crabtree

Written By

Matt Crabtree


Recently a contentious online celebrity, Andrew Tate — who announced he was opening a bank, after creating his own internet server infrastructure — has been the topic of much discussion.

After monopolising the social media algorithms, particularly TikTok’s, he has talked about cryptocurrencies and their advantages for acquiring liquid wealth during a time of high trade recessions and fear. 

With a net worth that is likely at least £200 million, Tate was asked what he thought the proper approach to crypto should be. His reply was, “Stick to the basics: Ethereum. Bitcoin. You should be panicked to buy as much crypto as possible so that — in three years — you can retire for life forever.”

The controversial influencer says that everything is currently on sale, making this the best time to buy big.

“You were panicking more to buy crypto when crypto was reaching all-time highs,” he said, “than you are now when it’s on sale.” Calling this “stupid,” his claimed viewpoint is that “It’s the same coins, the same infrastructure, the same ideals, the same technology.”

With much of the market believing crypto will return to glory in about a decade, Tate’s viewpoint is rarer. 

“Now is your chance… The whole world is on sale.” But he admitted that there’s less money “around,” adding that “The recession’s coming, inflation’s here. People are holding on to their money. The whole economy is getting tighter. They’re saying that property is going to tank.”  

How Bitcoin collapsed

The cost of a single Bitcoin climbed to £54,000 a year ago. Crypto's value has more than quadrupled in only one year. The limit didn't exist. The market cap of cryptos surpassed £2T. Rates in the 100,000s seemed close at hand. Life was fantastic for cryptocurrency holders.

And at that point, the market reversed course, and by the autumn of last year, it wound up being the apex of that particular Bitcoin bullish trend. The influence of omicron brought yet another upheaval in the industry. The second obstacle was roaring inflation, which came after the Russian-Ukraine conflict and the suspension of long-distance supply chains.

At first, none of the above appeared to have an impact on the core value of cryptocurrencies. In reality, Bitcoin was created to be a powerful inflation hedge.

The initial idea was that it might function as a completely autonomous banking market, unconnected to banking institutions or political aims. Even while that fiat money devalues, that component may ensure balance, raising its value in comparison to the British pound.

Regrettably, a large number of people ignored that idea in the choppy marketplace of 2022 and instead associated cryptocurrency with risky investments like useless development firms. Many large sums of money were stolen from the cryptocurrency marketplaces, for both known and unknown causes.

The business side of this introduced additional issues to the mix, making things worse. The sturdy basis of stablecoins was gone. The astronomical borrowing costs that coin lenders had promised to purchasers could not be fulfilled. The largest bitcoin exchange in the world collapsed and declared bankruptcy.

All of this plagued Bitcoin during the preceding year. The largest and most well-known crypto, Bitcoin, is currently worth £14k. That’s a three-quarter reduction from the all-time high from that brief time last year.

What can devs and the community do to revitalise Bitcoin?

Bitcoin does not presently aim to disrupt the system that we can see. The source structure won't be changed any time soon in the foreseeable future. The newsletter group for node builders receives a lot of housekeeping emails that fix minor problems but just don't truly develop Bitcoin in any unexpected directions.

Do you remember the most recent scalability projects of well-known coins like the Cardano Vasil? These coding forks significantly changed how each coin operates, allowing Ethereum and Cardano to compute more quickly, use less electricity, and have lower processing fees.

The developers of BTC have no such plans.

Most Bitcoin users and speculators, meanwhile, are not likely to notice the very few minor enhancements and efficiency gains simmering in the backdrop.

A good team doesn't change. Over the years, attempts have been taken to fundamentally modify the heart of the crypto, leading to so-called “hard forks” like Bitcoin Cash and Bitcoin Gold. However, Bitcoin may continue to work as it always has at heart. 

Some believe that Bitcoin should follow Ethereum's lead and abandon the resource-intensive proof-of-work (PoW) process in favour of something more controllable, such as proof of stake (PoS). Experts worry that this change would compromise Bitcoin's network security.

To gain control of the Bitcoin protocol with a 51% attack, a very heavy investment in mining hardware and power. Since PoS alternatives cannot equal that fundamental security feature, PoW and Bitcoin mining are likely to remain around until someone creates a more effective hacking technique.

Conclusion — substantial chance

The Bitcoins that a buyer purchases today for around £14,000 may well be worth much more in around a decade or less. Tate's prediction that this would come earlier could be accurate. Nevertheless, there is a lower likelihood that anything will go awry. If so, you'll be glad you didn't really risk all on this inflated probability.

Therefore, it makes logical sense to treat crypto like any other kind of trading. If you believe the long-term growth narrative to be accurate, buy a small quantity, but apart from that handle it just like any other purchase in a well-balanced strategy.

Crypto is simply one of many available possibilities; only time will be able to tell which is optimal for your individual investing plan.

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