In 2021, the crypto asset market is off to a good start, with Bitcoin breaking through $34,000 and Ethereum breaking through $1,000. After experiencing the abundance and magic of 2020, we know that now you are not in the hesitation and regret of to da moon, or in the optimism and longing of to da moon, there are also some “outsiders” who are eager to try and want to jump into this market. . In any case, there is still a big opportunity in 2021 (at the same time be sure to “drive” carefully).
My expectations for Bitcoin and Ethereum are to reach $100,000 and $6,000 respectively by the end of this year. In addition, I think UNI will unexpectedly squeeze into the top 10 of the total market value list; DOT is expected to become the most potential digital asset in 2021. XRP is likely to be squeezed out of the top 10 of the total market value list.
Companies that provide institutional services are expected to make breakthroughs in business this year. Because of the intervention of traditional institutions after the Fed’s easing and release, combined with the global asset side’s expectations for high-yield and high-odd products, Bitcoin rose rapidly in the two months at the end of this year. However, we still find that there are fewer paths for traditional institutions to invest and hold Bitcoin, and the path dependence of institutions relative to retail investors and user stickiness will be relatively strong. Whether it is custody, deposits and withdrawals, or corresponding insurance, there are enough tracks. The opportunity for entrepreneurs to explore, so we believe that institutional services will become a more certain opportunity.
On the other hand, compliance is the general trend and the only way forward to a larger market value. With the acceptance of encrypted assets, more digital currency institutional service projects will also receive bright data and valuations, and the expectations for listing will become stronger and stronger. Similarly, as the threshold for ordinary people to invest in encrypted assets is getting lower and lower, U.S. stock institutions will also allocate a larger number of investment targets that have direct business related to digital assets. Coinbase may be the first, but most likely not the last.
Regarding DeFi, I would like to remind you carefully:
The original financial products on the chain certainly have a certain degree of innovation, but the censorship-free model also has a large number of risk points such as project runaways and hacking attacks. At this time, it is necessary to introduce some mature experience in traditional fields to eliminate early bubbles and highlight the project behind The actual value.
Don’t underestimate a few historical issues, maybe they are the black swans of 2021, such as the compensation issue of Mt.Gox, the SEC’s review of the crypto market, and the asset-side contraction brought about by the new crown epidemic.
