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Everywhere you look, everyone you talk to, it’s crypto something — heck even for some of us out there we dream in crypto (yeah, I’m talking about you- it’s okay I won’t tell). Crazy times — but does that mean if you haven’t jumped into the crypto world yet you’re just too late? Has the ship sailed on the coveted exponential growth new industry promises?
Good news! The best is yet to come.
Crypto Adoption S-Curve
One of the fastest-growing sectors in the global economy is crypto/web3. Emerging in 2009, with the start of Bitcoin, the crypto ecosystem has reached 300M users in just 13 years. For reference, the internet at the same point had about 100M users. That growth is parabolic and doesn’t appear to be slowing down anytime soon.
As a matter of fact, the crypto boom has a lot of similarities with the early days of the internet and I think we can all agree that the whole internet thing kinda worked out. With the volatility, the companies rising and falling overnight, the emergence of cult-like followings around brands and new tech, and a general vibe of the Wild West meets the New Frontier — I’d say the comparison rings true.
At the current growth rate, the crypto world is projected to hit 5B users by 2030 (21 years after its emergence). As a touchstone, it took 21 years after the internet was created for it to eclipse the 1B user mark. The growth for the crypto ecosystem is almost unprecedented. However, when you consider the infrastructure is there and the trustless/permissionless nature of the technology it makes sense that it is taking the world by storm.
The Crypto Winter was/ is rough. But don’t let that dissuade you from getting involved. New technologies invariably go through periods of boom and correction. It’s the nature of the beast. Discipline and patience are key if you want to reap the rewards the crypto world has to offer.
Don’t take my word for it though. Over the past few years, many big corporations (including some Fortune 500) have embraced the crypto revolution. Some of the most notable are Tesla (Elon Musk), Block (Square & Cash App), Microstrategy (Michael Saylor), Disney, Nike, Adidas and many more.
Corporate America Goes Web3
But it doesn’t stop there. Now corporate America is going full blast into crypto — even with the perceived Crypto Winter, they’re investing heavily into the space. They recognize the importance of building during a bear. You name the company & they’re probably hiring some web3 specialists to develop their strategy for entering the space- if they don’t already have a team building out their vision.
Just look at the recent announcement from Mastercard where they announced a partnership with Binance to enable crypto payments at over 90 million retail locations. That’s huge and that’s just not my opinion. Here’s a quote from CEO of Mastercard- Michael Miebach:
“We can unlock the full potential of blockchain technology when we make it easier to access + easier to use. One way we do that is by bringing crypto to everyday purchases. To make that a reality, we’re working with Binance to let people to use their crypto to make purchases at 90m+ stores that accept Mastercard.”
As more and more people adopt crypto and more use cases are developed, the stronger the overall network becomes. The stronger the overall network becomes the more value created and the more value created the higher the likelihood your crypto investments will pay off.
Also, some of the biggest asset managers (aka The Masters of the Universe) have begun getting serious exposure to crypto. For example, in the past few weeks, BlackRock ($9T AUM) has announced a partnership with Coinbase to offer clients Cryptocurrencies. Goldman Sachs ($2.5T AUM) also has started to allow high net worth clients Bitcoin and Ethereum. These investments are just starting and there are trillions of dollars on the sideline waiting for the okay to join the party.
We have also seen many technology companies start to invest heavily in Web3. Alphabet (Google) leads the way in the last 9 months and invested $1.6B into Web3. Samsung in the last 9 months has made 13 different investments in Web3. It doesn’t stop there either. The biggest public companies in the world are all following suit. With these sorts of investments, you can see where they see the future going.
On top of these existing companies adding crypto/web3 to their business strategy, we have also seen massive companies birthed from the initial crypto boom. Some big names are Coinbase, FTX, Binance, Marathon Digital and they are titans of the industry in their own right. The future is very bright.
Now, let’s check in on the kiddos! When looking at trends, whether it’s social media, music or fashion, it’s always important to look at the younger generations to see what they are doing and thinking. The youngest generations are the most bullish on crypto and they’re going to be making the future.
Older generations are more skeptical and slower moving with new technology but as the younger generations age, mature and get an income things will begin to change even more rapidly. Millennials, Gen X, and Gen Z seem to be just as likely to invest in cryptocurrency as they are in equities. This is a big change from previous generations where they are more likely to invest in stocks or bonds. This new technology will be quickly normalized as the older generations increasingly pass the baton to their younger counterparts.
With crypto being a global phenomenon impacting emerging markets just as much- if not more than more - developed economies the TAM (Total Addressable Market) is huge. Just think about the United States where about 10% of the population owns cryptocurrency- that's just about 30 million people out of that 300 million total global number.
We have 300 million crypto users but we live on a planet with 7.7 billion people. The future is very promising. We are still very early in the adoption curve, corporations are just beginning to get in the game, financial institutions are embracing the technology and the biggest investors in the world are dumping money into the next generation of web3 start-ups.
All this is happening now. There's no time like the present. This is the perfect time to start to invest and familiarize yourself with the space. You don’t have to be a financial expert or crypto degen to take advantage of these trends.
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Simply put, you can get diversified exposure across chains and ecosystems to make sure you have access to the broadest set of opportunities in the market. Don’t sweat finding and keeping up with the ‘best project’ every day. Create a basket of the top projects, mitigate risk and ride the coming wave of growth.
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Cheers!
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