Elon's Musk - The Daily Gwei #173
Elon is merely a harbinger of what's to come.
Elon Musk made waves in the crypto community over the weekend because he changed his Twitter bio so that it only had ‘#bitcoin’ in it. This has led many people to believe that either Elon Musk himself or one of his companies has bought BTC and obviously this would be a monumental deal if it were true though there as been no confirmation of this yet.
It’s quite wild that over the last year or so we’ve begun to see many high-profile people start talking about and interacting with Bitcoin, Ethereum and DeFi. Some of these people put BTC on their companies balance sheets and others talk favorably about Ethereum and DeFi after using apps such as Aave or Uniswap. It is certainly starting to feel like the crypto ecosystem is crossing the chasm and entering the “mainstream” consciousness where it’s no longer treated as a joke or a fad.
I think Ethereum in particular stands to benefit from this mainstream attention the most due to the reasons I outlined in this piece. Basically, there are countless ways people get introduced to the Ethereum ecosystem from DeFi to NFTs to price speculation and we’re already seeing this play out with celebrities like Mark Cuban promoting DeFi and many non-crypto artists beginning to tokenize their work as NFTs. The best part of this is that most of the people who follow these celebrities are being exposed to crypto for the first time and have no priors - almost all of them will not become “maximalists” and just use the apps that provide them with the most value.
On top of this, I believe that once these new people discover/join the Ethereum ecosystem, there really is no going back. You can think of Ethereum as a giant theme park where new rides and attractions are added every single day that you can access from anywhere in the world. Want to watch a live show? Head into one of the many virtual crypto-worlds such as Decentraland or CryptoVoxels. Want to get rid of your bank? Go bankless with many of the different DeFi protocols. Want the thrill of a riding a rollercoaster? You can simply “ape in” to a new and unaudited yield farm (okay, maybe don’t do this). Anyway even if you don’t do any of this it’s still just plain fun to be involved in this ecosystem - where else can you get this much free entertainment?
There is of course a dark side to all of this attention as we saw play out with the Dogecoin pump last week in that so called internet-native celebrities aren’t doing their research and are promoting things that they have little understanding of to their millions of followers. Unfortunately, this means that these followers are going to end up getting hurt financially by the brutality of the crypto markets. Though, I do think that a “trial by fire” is necessary for new entrants when investing in this space as it’s one of the best ways to learn!
The next few months are probably going to be crazier than we can imagine as millions of new people pour into our ecosystem. Unfortunately this also means that there is going to be a lot of noise and it’ll be hard to keep our wits about us (DeFi summer was but a trial run). My general advice: ignore the FUD and focus on the people who have continuously provided value and signal over the last few years - your mental state will thank you for it.
Have a great day everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.