USDC keeps getting good news
So why won’t CRCL stock go up?
1. The run-up before takeoff
Take TSLA and Nvidia, for example:
both went through periods of volatility lasting anywhere from one to three years before taking off.
During that time, signs of a paradigm shift were already emerging,
but few people had driven a Tesla or knew much about GPUs.
Today, likewise, 99% of people have never used a stablecoin.
Of those, 50% don’t use USDC,
and even fewer know that CRCL is the parent company of USDC’s issuer.
2. The lag in financial results
Look at Micron, Samsung, and SK Hynix.
After the AI industry took off and ChatGPT launched,
it still took one to two years for memory chips to emerge from their quiet period.
That was because the companies’ earnings hadn’t yet taken off in a way people could see.
Now their stocks are up dozens of times,
and their financial results show huge profits.
But would you dare buy them?
It will take time for CRCL to reach the point where its scale shows up in its financial results.
It could even take more than five years.
3. Building consensus
Even if you look at TSLA’s financial results today,
they still don’t justify a market cap of over a trillion dollars.
But consensus has already formed.
People are starting to believe in the new story,
and many people believe in it.
The stock price has found support, too.
Today, far too few people know that CRCL uses USDC,
and most people who do use it aren’t convinced by USDC.
The mainstream stablecoin crowd uses USDT.
It will take time for more people to learn that USDT operates in a gray area,
while USDC is legal and compliant.
Most importantly, the remaining 99% need to realize
that stablecoins are the most widespread way payments will be made in the future.
It will take another three to five years for that consensus to form.
By then, even if earnings haven’t taken off,
CRCL will.
So why won’t CRCL stock go up?
1. The run-up before takeoff
Take TSLA and Nvidia, for example:
both went through periods of volatility lasting anywhere from one to three years before taking off.
During that time, signs of a paradigm shift were already emerging,
but few people had driven a Tesla or knew much about GPUs.
Today, likewise, 99% of people have never used a stablecoin.
Of those, 50% don’t use USDC,
and even fewer know that CRCL is the parent company of USDC’s issuer.
2. The lag in financial results
Look at Micron, Samsung, and SK Hynix.
After the AI industry took off and ChatGPT launched,
it still took one to two years for memory chips to emerge from their quiet period.
That was because the companies’ earnings hadn’t yet taken off in a way people could see.
Now their stocks are up dozens of times,
and their financial results show huge profits.
But would you dare buy them?
It will take time for CRCL to reach the point where its scale shows up in its financial results.
It could even take more than five years.
3. Building consensus
Even if you look at TSLA’s financial results today,
they still don’t justify a market cap of over a trillion dollars.
But consensus has already formed.
People are starting to believe in the new story,
and many people believe in it.
The stock price has found support, too.
Today, far too few people know that CRCL uses USDC,
and most people who do use it aren’t convinced by USDC.
The mainstream stablecoin crowd uses USDT.
It will take time for more people to learn that USDT operates in a gray area,
while USDC is legal and compliant.
Most importantly, the remaining 99% need to realize
that stablecoins are the most widespread way payments will be made in the future.
It will take another three to five years for that consensus to form.
By then, even if earnings haven’t taken off,
CRCL will.