The cryptocurrency market has been quite unpredictable since Bitcoin hit its new all-time high of $65,000 in May 2021.
In a bid to help crypto enthusiasts with more insight and information, I reached out to Carl Runefelt, a crypto influencer, for his opinion and expert insights.
1) Carl, what are the things that motivated or enticed you to embrace the concept of Bitcoin and cryptocurrency in general?
One of Bitcoin’s purposes is decentralization. No one controls who gets in or out of crypto, and anyone in the world can use it. Bitcoin represents a whole new era of freedom for people.
2) There are many parameters to consider when trading cryptocurrencies such as technical analysis, fundamental analysis, and sentimental analysis. Which of these parameters or its combination is best for crypto trading in your opinion?
In my opinion, technical analysis. People use fundamental analysis, like news or tweets from influencers, but I prefer technical analysis because it has proven the most successful in my trading. Influencer tweets can move the market, making fundamental analysis unpredictable. It is difficult to predict how people will react to tweets, so I stick to technical analysis. In technical analysis, when we break out of a pattern - we have a target, and it's clear where to enter and where to exit. When an influencer tweets, there is no clear target or entry. It's more similar to gambling.
3) In 2017, the cryptocurrency space had a hype cycle in Bitcoin and Ethereum, and it gave rise to another hype cycle in ICOs. Currently, we are in the hype cycle of decentralized finance (DeFi) and non-fungible tokens (NFTs). What do you think will be the aftereffect of the current hype cycle in the crypto space?
Currently, there is tons of hype around DeFi and NFTs, similar to the 2017 ICO bubble. In 2017 after the ICO crash, people got burned so badly that they lost hope of recovering their investments. ICOs got a bad reputation due to people losing money in what are known as rug pulls. I think the same thing will happen now with DeFI and NFTs because it's hard to tell the good from the bad. Eventually, it will become a bad word just like ICO - people don't say ICO today - they use other synonyms like TGE. Honestly, I believe crypto projects will also avoid saying the word DeFi in the future; they will resort to using a different name because there are too many projects taking advantage of buzzwords, like "DeFi" written in their whitepaper, ultimately helping them raise millions of dollars for over-promised and under-delivered projects.
4) Today, we have the increasing DeFi boom, growing NFT market, and many trends in the crypto space. What is your projection for the market, and what are you most excited about?
I am most excited about Bitcoin. I don't pay much attention to DeFi and NFTs. There are too many ups and downs in the altcoin market, whereas Bitcoin is the only cryptocurrency trending upwards in the long run. Of course, we are experiencing a pullback right now, though I believe the Bitcoin price will go to the millions within the next five years.
5) Recently the Chinese government started clamping down on Bitcoin miners, and there are more government regulations against cryptocurrency. What do you think should be the response of the cryptocurrency community?
I don't think it's a big issue. Whether it's the Chinese government or any other government, there will always be efforts to ban and regulate crypto. Unfortunately for those people, the free market will determine and adopt the best form of money, and Bitcoin checks all the boxes.
6) In your Youtube videos, you have always encouraged individuals and business organizations to invest in cryptocurrency, especially Bitcoin. What indicators and parameters make you believe that Bitcoin will be a big hit in the coming years?
One of the most famous indicators for Bitcoin, in the long run, is the stock-to-flow ratio model. It is a fundamental on-chain indicator that has proven correct for many years. I believe it will continue to be accurate - we should see the Bitcoin price rise to $300,000 within a year. I also think Bitcoin will go to millions of dollars based on this model and other fundamental indicators that show the Bitcoin price rising in the future.
7) There are always things happening behind the scenes that impact the movement of the crypto market to either be bullish or bearish. Are there things that you are aware of and willing to share for people to be aware and therefore make informed decisions?
Bitcoin has been publicly available since 2009, with only 21 million ever to exist. Many people who understood scarcity back then knew Bitcoin would catch on, so they have been accumulating for years. Ultimately, it can be hard to tell if there is anything behind the scenes happening, but the advice I can give to help people make informed decisions is to arm themselves with the same knowledge early Bitcoin adopters understood. We are still very early to Bitcoin and crypto, meaning it's never too late to start accumulating.
8) Today, the crypto boom has given rise to many scams, and many people have lost money in the process. Just recently, in South Africa, the founders of Africrypt crypto exchange vanished with $3.6 billion worth of user’s Bitcoin. In your experience, how can people protect themselves against such occurrences in the future, and is there a way to identify such founders?
More often than not, the people that are getting scammed are new to crypto. The scammers take advantage of newcomers with little knowledge about crypto, promising massive returns and impersonating influencers. These scams are complex, so people new to the crypto space are vulnerable. I try to educate people through my YouTube channel, Twitter, and Instagram though people will ultimately fall for these scams. New technology, like crypto, will always bring scammers. We saw this with the IT boom and dot com bubble in the late 1900s and early 2000s.
9) The government of El Salvador recently made Bitcoin a legal tender in the country. What do you think will be the impact on their economy, and will more countries follow the path of El Salvador? What will be the overall impact on Bitcoin and the entire crypto market?
For El Salvador to adopt Bitcoin as legal tender is a big step, it's some of the biggest news we have seen in many years. I believe this will trigger a domino effect where El Salvador is the first stone to fall, making other countries follow in their path. Larger nations will soon do the same, especially now that the dollar is so weak. I am very optimistic that the world will eventually adopt Bitcoin, as many countries find ways to avoid using the dollar. I believe that Bitcoin will be a neutral, reasonable alternative in the future.
10) In May, Bitcoin hit an all-time high of $65,000, and it is currently trading at almost half that price. Do you think a digital asset as volatile as Bitcoin is ideal for day-to-day transactions, as most crypto enthusiasts have stated?
The argument that Bitcoin is too volatile to be a medium of exchange is not valid. Bitcoin is not supposed to be a medium of exchange with today's level of adoption. The Bitcoin volatility will decrease every year as more people adopt Bitcoin. In 10 years, the volatility will be much lower, and in 20 years, the volatility will probably be much lower than the volatility of gold now. At that point, it will be perfect as a medium of exchange. I am very optimistic and believe that the price of Bitcoin will easily reach $5,00,000 within ten years, though I think $10,000,000 is also possible if everything happens as I think it will. If Bitcoin were to become a world reserve currency and absorb the value of traditional currencies and other assets like real estate, fine art, paintings, and other valuables, I think $10,000,000 wouldn't be a question.
Disclaimer:
The author does not have any vested interest in the projects mentioned above.
The opinions in this article belong to the author alone. Nothing in this article constitutes investment advice. Please conduct your own thorough research before making any investment decisions.