The crash of 2008 gave birth to mainstream online trading with ultra highspeed internet for retail traders. It destroyed the need for high commission stockbrokers and using institutions for high-speed internet trading. The crash of 1987 gave birth to computerized and real-time internet stock trading. The crash of 1929 gave birth to the American Empire by implementing a Federal Reserve-oriented market system. All big market crashes in history have had to do with the new ways of trading financial assets. In the 80s you needed a stockbroker. If the market hadn’t crashed in the 80s we’d still be using high commission stockbrokers as their firms would have the money to buy out the competition. You see technological advances in the way financial assets are traded is what causes most of these crashes. Before the Great Depression, the Federal Reserve Dollar was only breaking ground and had not established itself as the dominant currency. Before 1987 computerized trading wasn’t completely trusted and people still looked to stockbrokers. In 2008 online retail trading was nowhere near as significant as it is now. You see these crashes have to do with getting rid of the old and set in the new. In today’s age, we will have the ability to trade financial assets with cryptocurrency.
The current technology we have now makes the ability to trade stocks with crypto almost an impossibility based on institutional power. Also, you have things like NASDAQ and NYSE that can halt the trading of assets if manipulation is suspected. In Web3 trading stocks with crypto will be impossible to control, but the technology to do it with needs to be efficient. Right now the biggest and most reasonable argument against crypto is how much energy is used by miners. It is a valid concern and one that must be addressed. And when it does then expect the next big crash.
Intel used to dominate the chip market. AMD has taken over. Now ask yourself how an institution like Intel would let itself go like that? Are they doing this intentionally to make a big rebrand as a web3 enterprise?
Once Shashwat takes EqualHedge public he will not do it with the NYSE or the NASDAQ, but he will do it on a crypto platform. When a big company takes their company public via crypto and not the standard NYSE or Nasdaq then that is when you should expect the next big crash. Many people predict 2024. Now no one knows where the market is actually going. If anyone actually knew they wouldn’t be allowed to trade. Once the idea of trading stocks with crypto goes full mainstream you will see many financial institutions fall as that will almost eliminate the need for leveraged trading. Remember you can print dollars, but crypto is like mining scarce elements.
Many cryptocurrencies’ prices are being kept artificially low so that when the big realization happens the bigwigs can take them at a discount.
The only ace up the sleeves of these old-time institutions is the power they have over congress and they might threaten to shut the internet down. Don’t let them scare you. The government is dumb, but not dumb enough to shut down the internet.
If the stock market doesn’t crash in the 2020’s decade then we will not be able to trade stocks with crypto. As long as liquidity is available to the old-timer institutions then they will keep having money to prevent their fiat monopoly from letting crypto take over.
So how can you make gains on using crypto to trade stocks if there is no leverage fiat that’s constantly printing? Here is an example. You buy one NFT (stock) of EqualHedge. You buy for 0.001 ETH (25 USD). The price is now 0.002 (50 USD) and you’re still cynical since pump and dumps on fiat are very lucrative. Ok here’s what you do. You stake the NFT by researching how much active ETH liquidity and trading volume there is or whichever crypto is used for that NFT (stock) issuance. Basically, technical analysis will be very different here. Technical analysis with crypto will be very volatile, but unlike fiat, there is much more transparency due to the finite process in which crypto is dispersed. Essentially you are not buying cheap NFTs then selling them high as you do with stocks. You are buying based on the liquidity of a certain collection and the unique utilities it offers during a staking timeframe. Basically, think of trading like staking. Certain periods of staking will bring you higher gains. Then sell that NFT once the peak staking period has ended. You are basically buying a portal to a dimension. Some dimensions will bring out a lot of things from the portal and some will produce nothing. Basically, it’s all the same concept as buying dividend stocks but making high gains in a short amount of time, unlike a dividend fiat stock which can take years to gain.
Basically how a pump and dump will work on crypto is by staking the hottest NFT then selling that NFT regardless of the price as the money is made with staking, not buying and selling the asset being staked.
Example: I buy equalhedge NFT at 0.0001 ETH. Then stake it, because technical analysis says the utility scaling is high thus the ETH is liquidity is high. I make 0.0006 on a stake and dump. Which is 10x of what I put in to buy. After the gas fee to buy my overall profit is 0.0005 which is a 5x return. And get this I don’t have to sell the NFT once the stake and pump ends.
Are you beginning to see why the bigwigs are scared of this? It will give monetary power to those who never had it. And crypto is open 24/7.
In conclusion, NFTs are the new stocks. You don’t make any gains by buying and selling the asset, but by staking the asset. No need to sell the asset as you’ve already made money and can keep making more albeit less when the stake and pump ends.