The year 2018 has not been a good year for cryptocurrencies. Cryptocurrency prices basically collapsed starting as early as January 2018. The cryptocurrency market capitalization more reduced in volume by more than 700%.
Critical Time for Cryptocurrency
During the last quarter of 2017, cryptocurrency had the best time ever. Prices of major cryptocurrencies such as bitcoin and Ethereum skyrocketed. A lot of ICOs raised millions of dollars’ worth of investment funds during the same period. But the joy did not last forever. Before the break of the New Year prices of major cryptocurrencies collapsed.
Since then prices continued reducing steadily forcing the total cryptocurrency market cap to fall from over $830 Billion to barely $100 billion. The crypto community got devastated, many cryptocurrency companies shut down businesses. The government too got concerned about the abnormal price movements in the self-regulating cryptocurrency market.
Declining Graph and Asset Devaluation
A portion of the crypto community almost gave up on cryptocurrency and ventured into the related application of blockchain. Many people are scared that the falling prices create a lot of uncertainty about where cryptocurrency is destined. Some people put it that bitcoin failed to become the new form of money it was created to become. Worst of all things appear not to be changing anytime soon.
The entire market is hit hard by the devaluation of cryptocurrency assets that even well-established firms like Bitmain is also affected. It is obvious that Ethereum vision of becoming a global decentralized computer is held up by many barriers. At least it will take many months before such visions even come close to realization.
Where could the Hope for a Better future of Cryptocurrency come from?
Experts Still Bet on Bitcoin and its Underlying Technology
Despite the wild price drops in recent times, everyone can still agree that the prices of bitcoin now is higher than what it was in 2016. During the period from 2015 to 2016 bitcoin barely reached the price ceiling of $500. Bitcoin is currently trading for $3205. It is obvious the current prices are still subject to changes. By this, we mean either a sharp fall or a major rise.
Cryptocurrency is yet to meet its design objectives of becoming the currency of the future. Many experts still believe that cryptocurrency could disrupt finance, online betting, gaming, logistics, and content creation, among other industries. The same experts advice that it is time uses stop holding crypto and start building to improve market liquidity.
E. Glen Weyl of PolEcon recently posted on twitter saying,
“Feeling really bad for genuinely idealistic and good people who are being hit hard by the crypto crash, especially those who risked their human capital and careers based on promises of stable careers others had no business promising. At the same time, there’s a test of values.”
Hype of BUIDL and ETF
Meanwhile, the entire market rhythm seems to be aiming towards BUIDL, some people are cutting out exchanges and dealing with their cryptocurrencies by themselves. This is most cases include people giving out private crypto loans, trade derivatives or purchasing tokenized assets. This is all possible through trustless permission-less services the blockchain offers.
lol, that’s hilarious. We focus on real building, not filing. I think I saw HODL somewhere first. I may or may not be the first one to use the BUIDL term. Can’t remember, and not that important. … But if they fk around with #SAFU, I will be pissed! https://t.co/uAkZyYT7HC
— CZ Binance (@cz_binance) December 7, 2018
There is still a lot of hope that the approval of the first cryptocurrency ETF, will improve the cryptocurrency landscape. The first quarter of 2019 will see a lot of amazing technologies launching for the first time within the crypto space. Once of such ventures is Bakkt, an ambitious cryptocurrency market backed by the intercontinental exchange, Microsoft, Starbucks, and Boston Consulting Group.
Cryptocurrency has spent just a decade, the ecosystem still undergoes a lot of turbulence. But obviously, things will slow down in the coming years.
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