Cryptocurrencies were the change we needed, we craved.
Where did it all go wrong?
The total market capitalization of cryptocurrencies has plummeted, and once again, to under a $200 billion market capitalization. The previous year has been great for the cryptocurrencies, but, this year just went the opposite of it. The beginning of the fall of cryptocurrencies started January 2018, and it’s still stooping low, as for once, it had a market capitalization of over $800 billion.
Cryptocurrency was the change from the traditional stock market that we all wanted, then where did it all go wrong?
The average weekly returns trading cryptos was around 100% in a single week, a month ago. It could still be achieved, but, the odds are much worse than they had ever been. The traditional stocks offer a return of a meager 1–2% in a week (best case scenario), but, from the number of companies opening up and running out of business, the odds of booking losses are much higher compared to cryptos. The stock market had its time but we all needed a change, a chance to get ahead of the wasteful tax laws and crooked regional stock markets, cryptocurrencies brought about this change with being the first truly global solution, and, kind of, ‘tax-free’ depending upon where you live.
The most important thing that differentiates cryptos and stocks is, cryptos are digital tokens and might lose value much faster than solid assets like gold, or, traditional currencies, which are backed by their respective countries. The fact that cryptos aren’t actual commodities is true, but it’s we who gave gold its stature, for its amazing (pun intended) abilities to act as jewelry. The chances may be different but its all the same on a deeper level, the rate at which cryptos’ value could fall and the rate at which value of gold may fall, is just about same. It’s about time to time, after all, but we guess no one would choose mineral assets over global currencies when the economic depression hits. So, for once, if a recession is across the corner, you may actually have a greater chance of buying bread with cryptos rather than from your gold coins or paper currencies.
With all these losses, cryptocurrency is all set to fail, according to news websites and channels. Everyone’s claiming the crypto ‘bubble’ has burst. Maybe it’s market manipulation by the whales or maybe we are simply bored of it, but for me, this period will give people potential time to realize, and embrace, the actual potential of cryptocurrencies.