The New Year has started with significant fanfaras for the cryptocurrency market. According to the crypto plan of President Donald Trump, America will become a “Criplet of the Capital of the World”. This meant a deregulation of the crypto market, promoting innovative use for blockchain technology in financial markets and become a Bitcoin(Crypto: BTC) superpower.
These promises were mostly held. The White House was even hosted by the crypto of the Summit on March 7th. But a wider macroeconomic weakness – in the form of tariffs and fears of recession – sent a cryptocurrency market that overturned. Crypto currencies are down, so it’s hard to say what’s hot and what isn’t. So, let’s look at the closer key Trump priorities for cryptocurrencies.
The three most important crypto sectors are currently decentralized finances (Defined), tokenization in the real world (rwa) and stabilcoini. The easiest way to see this is the examination of the Crypto portfolio of the World Liberty Financial, Crypto Company associated with Trump using the designation line, “shaping a new era of finance”. It was created with a very published cryptocurrency that bought Spree before the inauguration as showing the support of Trump’s crypto plan.
Currently include some of World Liberty Financial Ethereum(Crypto: eth),, Chain(Crypto: Link),, Ondo,, Aaveand Etena. The company also holds two stablecoins: Pendant and USDC. All this share, in one way or another, reflects the basic idea of Trump’s crypto plan: the creation of new connections between the world of traditional finances and the world of decentralized finances.
Decentralized finances are truly related to the placement of the traditional financial system on the blockchain rail. Once you have a blockchain layer-1 like Ethereum, it is possible to build on top. You can create new decentralized digital asset trafficking stock exchanges. You can create new ways to loan and make money. And you can create a huge value by reducing the inefficiency of the modern financial system.
The real world (RWA) tokenization is one of the most popular trends on Wall Street currently, supported by managers of top property like Black -haired. Tokenization refers to the transformation of traditional assets (such as shares and bonds) into a digital property that can be traded on blockchain. Once you do, you can create a new efficiency and open markets to new participants. For example, it is now possible to lacked very illiquid assets (like private capital and real estate) and put it all on blockchain in the form of trade tokens.
Picture source: Getty Images.
It might be hard to believe that the stabiban are currently hot. After all, they are attached 1-on-1 to the US dollar, so they should trade for $ 1 at all times. You really can’t speculate in Stablecoins (unless you bet they will lose the piston), and many investors may not want to retain property like USDC or connection that trade in 1 day by day.
But as Coinbase Global Recently, they pointed out, Stablecoins could eventually be the biggest story of the year for Crypto. Trump’s crypto plan calls for the use of Stablecoin as a way to guarantee that the US dollar remains the main spare currency in the world.
To buy Stablecoins, you need dollars. And right now, the dollars are poured into Stablecoins unprecedented footsteps. The top five Stablecoin now has a total market cap of more than $ 200 billion.
Three not so hot cryptocurrency sectors include meme coins, artificial intelligence (AI) and everything related to the use of blockchain technology (such as games, web3 and Metavesse).
Remember the last Crypto Bull set? Prices of meme coins like Dogecoin and Shiba Inu They were abruptly worth. Celebrities have spent millions of dollars to buy tokens that are not bothering (NFT) from the Boring Ape Yacht Club collection. And people bought digital real estate in Metavese as a way to get rich quickly.
Unfortunately (or luckily, depending on your view), this type of speculative spot is unlikely to return at any time. New Official Trump Meme Coin is reduced by about 85% of its highlights, no one buys expensive NFTs when it is threatened with a recession, and early attempts to combine AI and cryptocurrencies-even for the creation of a completely new position of the White House AI and Crypto Czar-do have been very low now.
You still are not convinced that the cryptoic sectors are not affected by consumers? Just look for pictures of Crypto White House Summit that happened on March 7th. The event looks unlike any crypto event you’ve ever seen. One iconic picture from New York Times Looks like a festive meeting of the Wall Street Committee: The participants are dressed in dark business suits and ties, decently clapping and sitting at a long, dear table under the gold chandelier and awake eye Abraham Lincoln.
At this point you are probably wondering: Why didn’t you mention Bitcoin? For one thing, Bitcoin is not a sector, it’s one property. And secondly, Trump’s crypto plan is primarily focused on economic competitiveness and financial innovation. The goal is “re -do America Great”.
To the extent that Bitcoin can help achieve this goal is important. For example, if it can help strengthen US dollars, increase investors’ confidence in the US economy, help paying debt loads of $ 36 trillion or bring new jobs to America, then it is important.
For now, however, it may be more important to understand how the worlds of traditional finances and finances of Blockchain are fitting together, which means for the US financial future. I am convinced that this is the key to discovering which crypto currencies below radar work are the best investment possibilities.
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Dominic Baselto He has positions in Bitcoin, Chainlink and Ethereum. Motley Fool has positions and recommends Bitcoin, Chainlink, Coinbase Global and Ethereum. Motley Fool has disclosure rules.
