Hello folks,
I read many posts and articles these last couple of days of people writing about : OMG we are finished, the dreams gone with the wind and etc.
Lets just say what is going on and is this normal or not.
Markets are reacting to Fundamental factors
Markets are undergoing technical correction
And YES it is NORMAL
Let's discuss about some of this fundamental factors:
#1 China and South Korea talking about ban and/or heavy regulations of cryptocurrencies
Well this is a big hit. We should have expected this to happen. Soon or later, some governments but not all, will ban cryptos or at least put them in their control. The markets reacted accordingly. People are jumping off the board trying to save their profits. Remember that many investors are still in decent profits since they invested early in the beginning of 2017 or in 2016. They are converting their cryptos to fiats in order to lock their gains. Some of them are changing to fiat to wait and re-enter from the moment they feel markets are bullish again.
Two days ago South Koreans have collected 200 000 signature for a petition:
A petition demanding the government to stop regulating cryptocurrencies garnered more than 200,000 signatures by Tuesday (Jan. 16) after being filed to South Korea’s presidential office two weeks ago. That would force the government to give an official response, which could lead to (paywall) the opening of an investigation.
“Korean people can dream a happy dream that we’ve never been able to in South Korea, thanks to cryptocurrencies. I might be able to buy a house in a country where it’s very hard to buy a house. I might be able to live a life doing something I want to do. I might be able to take a breath,” reads the petition (link in Korean), which was posted online by an anonymous person on Dec. 28.
#2 Influential people talking about crypto crash and/or calling it a fraud and bad investment
There is no doubt, people with high reputation and authoritative power or "specials" can and will influence the majority who are just "regulars". Like on steemit, when you read a post from someone with reputation score above 70, you trust more as opposed to those with score under 50. This is because people are lazy to judge by themselves or they just don't know or have no knowledge of how to judge by themselves. Reading and analyzing can consume big portion of their time, why not to copy just those who are experts, if they were right before, they should be right again and again. Warren Buffett is a GOD of investments and just imagine how many recreational crypto investors would follow his advises. More than half of crypto investments are done by people without any knowledge of finance and/or investment management. They are just trend followers, like:
everyone does it, I do too.
Oh and yes, here is what Warren Buffett said:
"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,"
We also know, that JP Morgan Boss, Jamie Dimon was criticizing crypto currencies and Bitcoin in particular, calling it a fraud and telling to media that he would fire his employees who traded cryptos and later, he said he regrets his words.
I regret making those comments. The blockchain is real. You can have crypto yen and dollars and stuff like that.
Besides you can search google and find many supporters of bitcoin who are optimistic and say the market is still in early phase of boom. Just as you can find many who keep saying that this is a big bubble and it will crash
To me, if it was a bubble, it already made its effect. The bitcoin and xrp as an example lost 50% of their value since their all-time highs.
#3 Gradually, worldwide leaders in different industries are announcing their plans to accept crypto currencies. Some will accept Bitcoins some XRP and etc.
As an example we can mention recent statement from NBA's Dallas Mavericks:
Mark Cuban’s NBA Team Mavericks to Sell Tickets for Bitcoin “Next Season” Link to the original article
Besides, accepting the cryptos, many companies are switching to blockchain technologies. Here is another example of Maersk and IBM:
Before I finish this post, I kindly ask all the crypto investors to do the following:
- If you are afraid to loose your money and are sleepless at nights, just quit it. Stress is bad for your health and no matter how much you gain in the end, you may ruin your health and its not worth it.
- If you are calm and HODLing, we have common understandings. Just stay calm.
- If you liked this post, resteem it. Others may also like it.
- If you think I missed something in this post, let me know by your comment
And I feel this post will be very interesting to read in December 2018. :)
about #3, after you wrote this post, within one month, Ripple has signed agreements with five big customers, including the banking system of Saudi Arabia.
And YES, in January 2019 I hope Tether will still be available as FIAT to secure huge profits during next big correction. 11 Months till then. :)
I am commenting on March 3, 2018
I think cryptocurrency become a futuristic money in the world, like a goverment from sentralized become de-sentralized system. Nice posting Mr.bayuya, thanks for sharing. Regards, @adrienoor from Indonesia.
The cryptos will never replace fiat currencies such as USD or CHF (mabe in the next century) but they can become alternative store of value and strong financial instruments with less volatility.
As for governments, they will never become decentralized. Government by itself means that it is a centralized structure.
We face the unknown ... but confidently
#Bitconnect investors got financially ruined but people also were warned, They drove themselves into this.
Everything about BCC was an obvious scam, If you fell for it you could fall into any other non-crypto scam.
BCC is up by 300% today :)