Is cryptocurrency a good Christmas gift?

The upcoming Christmas gives us a pause for reflection. A few days ago, the ATH (All-time High) anniversary had its place. In December 2017, Bitcoin reached the highest, in its 10-year history, price of USD 20 000. The market was overrun by euphoria and pervasive enthusiasm, which begun to extinguish alongside the beginning of 2018. The following months brought a significant BTC declines and in the wake of the greatest cryptocurrency, all the altcoins followed. The cryptocurrency market has lost around 700 billion dollars since its peak at end of last year.

Cryptocurrency and the dotcom bubble

November 2018 had been the worst month for cryptocurrencies since its declines in 2011. Many self-proclaimed experts foreshadowed the worst scenarios. Experienced investors however, knew that the current situation was due to a natural cycles that affect each market. Looking closely at the historical stock prices of an e-commerce giant — Amazon, we will shortly notice that in December 1999 their value reached USD 106.69. Soon after, in september 2001, the price per share fell to USD 5.97. The marked was heralding the end of this promising enterprise.

This year, Amazon, as the second company in the world next to Apple, managed to exceed 2 billion dollars of market capitalization. The price of one share now fluctuates around USD 1500. Investors who succumbed to emotions and sold the Amazon’s shares a dozen years ago, today are probably not very pleased to have made such a decision. Of course it’s not surprising, because the dotcom bubble burst was acute for their wallets.

Currently, the market shows much greater dynamics than in the times of dotcom bubble burst. The market’s operating rules are, however, immutable. Just as in every market, only the strongest projects will survive also among cryptocurrencies. Therefore it’s worth to consider what links projects that showed the greatest increases and suffered least during the bear market that we experienced over the last year.

Cryptocurrencies are more stable than tokens

Watching the market situation we will see that cryptocurrencies, or the projects with their own blockchain, show, overall, more stability. Of course, just as the whole market, they also experience declines, but they have proven themselves to be a much safer investment than tokens. One of the undeniable Bitcoin’s advantages compared to other digital currencies is a large user community. Ethereum, on the other hand, owes its value to the platform for creating smart contracts. Each subsequent project (token) created in the ERC-20 standard potentially influences the value of this cryptocurrency. These are the most frequent, but not the only, investors’ choices.

A frequently adopted strategy is to look for projects at an early stage of their existence. The majority of the projects emerging on the cryptocurrency market, are not, in fact, cryptocurrencies, but tokens, to a great extent dependent on the platform on which they were created. When a particular blockchain experiences problems, projects which based their token on them face them as well. This is one of the reasons why cryptocurrencies, ie digital currencies with their own blockchain, may be a better choice in creating an investment portfolio.

Own blockchain equals better development perspective

In a situation where a given blockchain enables creating own projects, in the long-term perspective it may positively affect the price of the cryptocurrency based on it. Open source code available to the community is a good signal for investors. On the one hand, it shows that the creators have confidence in their project, and on the other, it allows developers from the outside to actively participate in its development.

This was the assumption, that creators of BlockStamp (BST) cryptocurrency made. Own blockchain will enable efficient development and scaling of the project, and the open source code, publicly available in the Github website, will allow its users to create their own solutions.

BlockStamp platform is already available for the users’ disposition. BST blockchain allows, among others, to create your own online casino, secure your documents, and build a Domain Name System (DNS) in a peer-to-peer network. The shared code enables implementation in industries such as banking, insurance, public administration or gambling. It can contribute to creating more secure, transparent and trustworthy solutions in many market segments. Detailed information about the BlockStamp project can be obtained on the BlockStamp.info website and in the whitepaper provided by the creators.

Can cryptocurrencies be a good Christmas gift in 2018?

As we can remember, last December came with the record Bitcoin price and the highest in history cryptocurrency capitalization. This year’s continuous downtrend gave us the opportunity to do our shopping in a promotional price. During the sales season, shopping centers are crowded with customers desirous of the bargain. If a 30 or 50 percent discount in the store encourages us to buy new products, then maybe it is also worth considering to buy cryptocurrency when they are, for example, 80 percent below ATH?

If, after reading the fundamentals of BlockStamp (BST), you acknowledge you want to possess this project in your wallet, you can go shopping at the PicoStocks.

We wish you fulfilling gifts for the upcoming Christmas, so that we can mention our good decisions next year at the Christmas table :)