The problem with crypto is that the tech and use cases are real but the valuations are retarded.
We are in the 8th or 9th inning of this cycle. TradFi is not only buying our coins, they are actively embracing the technology with government approval.
There is no doubt in my mind that adoption of blockchain will grow exponentially over the next few years, but valuations are already near their peak and almost entirely based on speculation.
Most people struggle to understand how both things can be true. We are still in the early innings of blockchain adoption, but at the same time we are in the late stages of speculative investing.
The most lucrative part of the cycle is still ahead of us. We are about to enter the delusional euphoria phase where gains come quickly and irrationally.
My view is that we will see one final blow off top on alts, similar to November and December of 2024, followed by a long and miserable bear market for the majority of projects. A few exceptions will thrive, but most will bleed.
Now is the time to start contemplating your exit plan. If you have made life changing money this cycle, secure your freedom and do not get overly greedy. This is not me calling the top. It is me telling you that we are close to the end.
As always, this is just my current mental model. Strong opinions, but loosely held. I am open to being wrong and changing my mind. Just sharing my current thinking.
Threadguy reveals he listened to the 2021 Light x UpOnly podcast and says it sounds identical to now
"I booted this interview from July 2021 with LightCrypto and the parallels to where we are right now were unbelievable. One of the first things they say is they crack a joke about how ETH is the same price it was two years ago. Second thing, Cobie says Bitcoin price action and sentiment right now was the worst he can ever remember in his career."
"Third, Ledger says there's no buyers, I don't know who's ever going to bid Bitcoin, there's no flows. Fourth, they talk about how altcoins are worthless and why would you buy alts when you could just buy stocks."
"It's the same story over and over and over again. And mind you that was pre-FTX. So if you feel miserable about Bitcoin right now, it was July 2021 and you got a scammy double top after that before we collapsed and FTX happened and then we got this crazy run."
@TrustlessState@AskVenice@Lighter_xyz Speak to @proofofmud if you want a really interesting founder building infra that has the potential to be as disruptive as Hyperliquid, but for native BTC capital markets.
@deangenerate0@okzlymc I’ve answered it many times. I deleted all my altcoin posts when I called too and said that I was planning on selling all my alts and focusing on Bitcoin.
The first wave of a big crypto trend usually gets the direction right, but the problem slightly wrong.
Tokenization was obvious because financial assets were going to move onchain.
The first wave focused on the assets themselves: stablecoins, treasuries, funds, credit, real estate.
But the bigger unlock was not just creating onchain assets. It was making those assets usable by real capital through distribution, liquidity, compliance, trust, servicing, and buyers.
Bitcoin finance feels similar now.
The direction is obvious: people want to do more with BTC than just hold it.
Borrow against it. Earn on it. Finance with it. Use it as collateral.
So there will be a lot of Bitcoin financial products.
That is the natural first wave.
But the bigger unlock is not simply more products around Bitcoin…It’s Bitcoin becoming useful as collateral for a much larger market.
That requires the market around it to become deeper, more liquid, easier to price, and easier to underwrite.
Making BTC productive is the first step.
But the real unlock is making Bitcoin collateral reliable enough for large markets to form around it
@thsottiaux I’m constantly hitting my rate limits for Codex after 2-3 days of use/week. I have the top plan. In the past when you’ve reset rate limits it hasn’t reset mine. I do use it a ton, but wondering if there may be some issues causing me to max limits fast? DM?
@david_seroy@proofofmud Totally. Not saying the bridge is insecure. Just saying repo pricing cares about more than bridge security…there’s other dependencies that have to be priced. Doesn’t mean it’s bad. It just means it’s not zero-haircut collateral.
@david_seroy@proofofmud It’s a subtle point but the repo collateral is priced by how reliably it can be closed out under stress. When liquidation means selling bridged BTC into DEX liquidity, the lender has to underwrite bridge risk, redemption risk, and basis risk. That risk becomes a haircut.
Bitcoin’s next era is not about bringing DeFi to Bitcoin...It’s about Bitcoin entering its ProFi era.
Not by importing the old stack, but by building the infrastructure serious collateral and serious markets actually require.
The last decade was about making Bitcoin more accessible. The next frontier is making it more productive.
But the real question isn’t whether people want yield. It’s whether Bitcoin can support real financial activity at scale. That requires infrastructure, not just products.
Why doesn't Bitcoin have native credit markets?
Capital markets have existed in traditional finance for over 400 years.
They’ve existed in Ethereum's DeFi ecosystem for almost a decade.
The reason might surprise you.
Read more: https://t.co/5zw2iwwqsf
@Lion7Flash@Champagnepapa16@ForgivenRWAs@GunnisonCap How many times did I tell people if they don’t deliver by September I’m out? How many times did I tell people I think alts are cooked and I’m planning on selling? Would you have rather me loudly and aggressively leave the project?
@Champagnepapa16@ForgivenRWAs@GunnisonCap I understand why he thinks that, but I didn't clear my tweets because of an alt lol. I sold a long time ago, well before they minted new tokens. I shared my evolving feelings about the project after I changed my view. Normal people adjust their views based on new information.