Ed Moya – 2 Big Super Bowl Winners; The LA Rams And Cryptocurrencies
Ed Moya, Senior Market Analyst at OANDA, joins us to review why he felt the cryptocurrencies were the big winners along with the LA Rams in the Super Bowl due to the 4 key commercials that generated a lot of buzz during and after the game.
In this discussion we get Ed to unpack some key misconceptions about cryptos and what the value drivers are for the cryptos. We get into the emerging use cases for decentralized finance and smart contracts with the altcoins, and contrast that with the much different qualities that Bitcoin has, making it more of a unique store of value for crypto investors. We contrast Bitcoin with Gold, and dig into to what aspects are similar like scarcity, no third party counterparty risk and it being a currency outside of the traditional fiat system, but then show it is a different asset class in many regards. I ask Ed how something that can drop 40-60% after the highest CPI readings in decades can be seen as either a store of value or an inflation hedge. We wrap up with questions around how there is so much confusion and debate about if there is value in Bitcoin and why that value is not nothing, but in fact is backed by the 13 year network and infrastructure backing up the cryptocurrency and doing proof of work verifying transactions.
That could very well be Nigel. Part of it reminds me of that 2017 Thanksgiving / Christmas season where there was so much crypto buzz and those advertisements about “drop gold”, only for Bitcoin to peak out around $19K and then head down to $3k.
Regardless, some form of cryptos and blockchain DeFi tech will be with us from here on out and certain companies will arise from the masses as the big winners for the application-based altcoin universe. Most of the advertisements were for crypto exchanges to get people on there to convert their fiat into cryptocurrencies, with them as the custodians. Most of the drama and news on losses about cryptos have been poorly run or protected exchanges getting hacked, so most purists advise downloading cryptos on a personally secure digital wallet to cut out this risk, but that adds other potential issues of the digital wallet failing, or loss/theft/damage to the hard drive.
As for Bitcoin, it is the prime crypto storage vehicle, and since it is global, it will likely be around for quite a while longer, but as to where things settle on the prices, that is hard to know. Many are calling for a pullback to $20k, some think it is going to $0, and others think it is going to $250K-$500K. Who knows? It isn’t out of the realm of possibilities that it could make a run at the all time high of $69,000 from last November, and maybe get to 6 digits before it’s big move higher is finished.
The head coaches of the Super Bowl teams are 36&38 years old and beating the older more experienced Andy Reids and Bill Belichicks of the NFL. Like them, a lot of the guests on the KER seem younger, energetic and have good ideas. The guy who appears for CXB would be one good example.
Yeah, Ryan from CXB is a sharp dude.
Or the prevalence of crypto adverts during the Super Bowl marks the high point of crypto hubris