Venture Capitalist: Crypto Gains Won’t Come As Easy During Next Bull Run

Tony "The Bull" Severino

Last Updated: October 7, 2020 11:26 am

3 mins read

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During the height of the 2017 crypto speculative bubble, it wasn’t uncommon for random altcoins with little to no use case at all to rally over a thousand percent or more. Life-changing wealth was generated.

One venture capitalist claims that returns like that won’t be quite as easy to come by during the next bull market, however, does believe those few altcoins that do show true promise will pump alongside Bitcoin.

Remembering Life-Changing Altcoin Wealth and the Bitcoin Bubble

In late 2017, the mainstream media and public learned of Bitcoin’s rise from virtually worthless to at that point nearly $10,000.

Within days of that level breaking to the upside – currently acting Bitcoin’s strongest resistance yet – the asset skyrocketed and set its all-time high record of $20,000.

Stories of teens becoming millionaires nearly overnight caused a rush of FOMO into not just Bitcoin, but altcoins like Ethereum, Ripple, Litecoin, and countless others.

Top altcoins ballooned even more so than Bitcoin.

Further helping Ethereum’s rise, the platform was used to launch initial coin offerings where investors traded ETH for newly minted coins promising to be the next Bitcoin.

Even these unknown tokens pumped to irrational levels, adding to the bubble. It wasn’t unusual for a relatively unheard of coin to suddenly experience a thousand percent pump or more. Then later dump by 99%.

https://twitter.com/scoinaldo/status/1268615762534559745?s=21

VC: Crypto Gains Won’t Come As Easy During the Next Bull Market

Those early gains from the last bull market, won’t come as easy, claims venture capitalist, Simon Dedic.

Dedic is the co-founder of Blockfyre and managing partner at Moonrock Capital.

Although he says those that missed out the first time around won’t have it simple, as long as the right altcoins are chosen, lightning may strike again after all.

To paint a clear picture as to why Dedic and most across the finance world would agree that such returns are unlikely a second time, all you need is math and common sense.

The total altcoin market cap – pictured above – grew from roughly $60 million USD in value, to $450 billion in total market cap. This represents an over 780,000% ROI.

For the total altcoin market cap to grow a similar percentage, it would take the total altcoin market cap to over $450 trillion in value.

According to the Global Wealth Report published by the Credit Suisse Research Institute, global wealth grew in 2019 to a total of $360 trillion.

This means that the altcoin market would need to grow to larger than all the world’s wealth, which is distributed across many asset classes.

There also likely won’t be ICOs this time around. Small-cap altcoins that have fallen into obscurity, are likely doomed to stay there as investors may not make the same mistakes twice.

Instead, assets with real value this time around will absorb most of the capital, but even they won’t be able to grow to such unrealistic levels.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.