Dismal economic conditions force people to look for alternatives. Cryptocurrency expert RJ Fulton says Bitcoin will provide users with a safe haven to protect their purchasing power and wealth from manipulative government policies. Another crypto expert, Dominic Basulto, considers improving fundamentals combined with growth prospects of his new strategic initiatives to make Solana a strong buy.
Nigeria and Lebanon turn to Bitcoin
Citizens in developed countries enjoyed relatively stable economic conditions for most of the 20th and 21st centuries. However, those in emerging economies faced a very different reality. In these countries, hyperinflation, bank runs, and widespread depression can undermine all hopes for one’s economic prosperity. While such events may be the result of global forces, they are often caused by a lack of foresight and a lack of leadership by the governments and central banks of these countries.
Such incidents still occur in places like Nigeria and Lebanon today, putting enormous pressure on their citizens, ultimately leading to diminished confidence in the government’s ability to manage the economy. As a result, people are looking for alternatives and seem to have found a way out with Bitcoin (BTC), the world’s first cryptocurrency.
Cryptocurrency, a better form of money
Bitcoin offers an alternative to the status quo and is growing in popularity as a result. Unlike currencies issued by central banks, Bitcoin is resistant to manipulation. Due to the decentralization of this cryptocurrency, no institution or government can inflate the supply of Bitcoin. Additionally, there is a tangible ceiling of just 21 million BTC written into Bitcoin’s code. As a result of this limited supply, the purchasing power of Bitcoin holders may actually increase over time.
Events like those in Nigeria and Lebanon will likely only accelerate Bitcoin adoption as citizens seek safe havens. This seems to be happening in Nigeria already. Over the past few weeks, the price of Bitcoin in Nigeria has increased disproportionately compared to the rest of the world as demand has skyrocketed and people are trying to circumvent over-access policies. Before prices dropped last week, those wishing to buy Bitcoin in the US would have had to pay around $23,000, but those who bought Bitcoin in Nigeria would have to top out about $38,000, a premium of around 60%.
In Lebanon, citizens are increasingly using Bitcoin to protect their purchasing power and even serve as their own bank account. With the ever-changing exchange rate of the Lebanese pound, Bitcoin offers stability and reliability in a volatile economy.
Frankly, that’s the beauty of Bitcoin. It offers an escape and an alternative to those in emerging economies. While it is difficult to truly understand how widespread the use of Bitcoin as a form of payment among citizens and businesses is, it looks like use cases will increase as more people are forced to look for alternatives in these besieged countries. For reasons like we’ve seen in Nigeria and Lebanon, those living in emerging economies may be the ones promoting the widespread adoption of Bitcoin much faster than people in advanced economies, just out of necessity.
Are Solana’s foundations solid?
The basics still look good on Solana. After the spectacular collapse of FTX (FTT) in November, as you follow on Kriptokoin.com, investors were understandably worried about whether the coin could recover. Not only is Solana’s price, but the developers seemed to be non-Fungible Token (NFT) creators, and users may decide to abandon Solana Blockchain due to too much caution.
But it doesn’t look like that. When crypto research firm Messari released its latest Solana figures for Q4 2022, many of the key indicators of long-term health, such as the number of transactions processed by the Blockchain, were actually improving. While there was a definite setback in some areas of Solana’s performance, such as the number of NFTs minted on the blockchain, Solana actually held up well against its peers.
What is the fair value for cryptocurrency?
It’s nearly impossible to talk about Solana’s long-term future direction without taking into account the rollercoaster ride crypto has been going through lately. Before the collapse of FTX and the spread of the FTX contagion, the cryptocurrency was trading above $36. Then came an epic crash that saw it drop below the $10 mark.
So even though Solana’s price has nearly doubled from its year-end lows, there’s still a lot of room to rise. If you believe the idea that Solana is on the way to recovery, then the fair value of the crypto should be close to $36. Because that’s the same level Solana was trading before the FTX meltdown occurred.
But that price doesn’t even start to take into account all the new growth initiatives in Solana right now. While it will take time for investors to get immediate paybacks from long-term strategies like Solana Mobile and Solana Pay, we are starting to see the emergence of a much more vibrant Solana ecosystem. Once upon a time, it seemed as if the only fundamental strength of crypto was in NFTs and Blockchain games. But now it seems to be making a convincing entry into areas like DeFi as well. Therefore, I am long-term optimistic about Solana. There will be many ups and downs in price over the next 12 months. That’s why it’s important to focus on the long-term vision of crypto and what the team is trying to achieve.
Now, we’re seeing encouraging signs that everything is now powered by real-world uses and real-world products, like the incredible speed and transaction processing capability that made investors love Solana in 2021. The current drop could be a great opportunity to buy it at a lower price.
The opinions in the article are those of the experts and are definitely not investment advice. We recommend that you do your own research before investing.
29982
