Crypto's Black Friday
Dear Bankless Nation,
There was a new COVID variant detected in South Africa this week.
I’m not going to pretend like I know anything about virology or epidemiology, but the new variant B.1.1.529 is rumored to be a substantially mutated and highly contagious form of the virus. (good writeup here for anyone interested)
Par for course, markets didn’t react well to the news. Equities, oil, and naturally, crypto assets all tumbled. Markets hate uncertainty, and there’s a lot of uncertainty around this new variant.
While the virus can’t be good for global public health, the market correction is positive for the overall crypto economy.
Ethereum killers have gone parabolic, The Metaverse is now the future, DAOs are buying anything…
The markets need to sober up—at least for a bit. As Ben Cowen highlighted on State of the Nation last week, these corrections help extend the bull market and allow a more sustainable rise over the long run.
So even if the next few weeks are choppy, it doesn’t matter. We’ve already gone through the worst of COVID, and this is the new normal. At this point "New Covid variant leads to lockdowns for the Nth time" may as well have as much impact as "China bans Bitcoin for the Nth time”.
Don’t panic dump on last year's news. It’s just a brief moment in a long-term game.
Enjoy the Black Friday Sale.
Here’s what’s lined up for next week:
- We talk to the founders of Polygon on scaling vs. abandoning Ethereum
- Why Proof of Stake won’t drive wealth concentration
- ZenLedger is dropping the ultimate guide to NFT taxes (who doesn’t love taxes)