Bloomberg TV: Not gold, but cannabis, will displace cryptocurrencies 14.12.2021

Not gold, but cannabis, will displace cryptocurrencies – Bloomberg (bloombergtv.bg)

There is a theory that cryptocurrencies are going down and companies will start investing in other assets. For some people, these assets are precisely the services and products of companies involved in the processing of cannabis.

The fact that this is expected to happen shows that the trend, which began with the first publicly traded company in the 17th century, of capital moving from sector to sector continues.

This was stated by Yordan Micikulev, professional trader and founder of “Rodopa Capital”, in the column “Bloomberg TV Bulgaria Interview” with host Krasimir Cheshmedjiev.

“In the capital markets, there is a movement of money from sector to sector. Cryptocurrencies are particularly interesting right now because we are at a peak of sorts. There is mass acceptance by people, they reached too many people. When the crypto market starts to fall, crypto investors start investing in a market that is just gaining momentum.”

Accordingly, it is about the cannabis market. This is a market that is currently well below its real value. Along with the infrastructure spending bill now being voted on in America, the legalization of cannabis is also expected to pass.

The biggest demand right now is in Canada. However, this is shaping up to be quite a serious sector and the Americans are definitely looking towards it.

“Honestly, I don’t think that the Americans are currently slowing down, but rather preparing the market. There is a very interesting trend, an entry from sector to sector. The way information is presented to the crypto sector is similarly presented to the cannabis sector. The representation of the companies is identical.”

There are even identical rankings of the companies – Cannabis Market Cap and Crypto Market Cap are actually identical in vision. All this indicates that the market is currently being prepared and that new companies will enter it. The average lifespan of companies and ideas is a statistic that has been running since 1950.

A study by Petar Hristov called S&P Company Lifespan measures the average lifespan of companies in the S&P. In it, it is observed that 1960 was the year with the highest life expectancy of companies – 50 years. From then on, it tends to decrease. This is precisely because of globalization.

Currently, information reaches people much faster and good ideas run out very quickly. “I think the crypto sector has reached too many people. But if he cannot find a practical application, then he will remain a means of speculation. Cryptocurrencies have long been rumored to be the new monetary system, but people have always wanted to take power away from governments in such a way. And they never succeeded.” If the crypto market wears out, the money from it will not disappear. They will go to another sector and most likely it will be that of cannabis.