At the End of the Crypto Market Correction
In the course of the next few years to achieve cryptocurrency market attract a trillion dollars, bitcoin and much of the altcoins could come back or even exceed those levels of historical maximums achieved last year, still this correction is missing a little bit. we are in the course of a big filter where some projects fail, something similar happened with the dotcom bubble when in 2004 two years after the worst of that collapse of the nasdaq market about half of those companies founded since 96 were still in operation, I do not know by now how many of those companies will still be in operation.
If we take into account this fact that of those almost 400 about half the companies survived and we bought it in this market where there are almost 2000 projects currently on the market another difference those companies that were part of the nasdaq had regulations unlike many of the projects that are now in cryptocurrencies, I would say that it is very optimistic to say that half of the projects of the cryptos market will be able to survive knowing that it is an unregulated market and because of the amount of scams and bad projects, it would even be optimistic to say that 25 %, but it would be an interesting ratio for one to look for projects and take advantage, what this bear market is giving us is an opportunity that many thought was already gone,last year many thought that the opportunity to buy cheap cryptos had passed, and it is not like that here is another opportunity, what is necessary is to be careful in which projects to allocate capital because we know that many of them will not be able to survive.
In what remains of the bear market, it is necessary to make a good fundamental analysis, look at the projects, how the communities are, how the development is, how the project is moving beyond marketing and beyond the fud and fomo, if we see what happened after the collapse of the nasdaq in which the most solid projects that were during that crisis are now referents such as google, amazon, apple and that is what we must focus on with this market of cryptocurrencies.
Cryptos value transfer projects such as bitcoin, litecoin dash digibyte, rippel dogecoin all those that have that feature that serve to make payments or to save as a deposit of value as expected to be bitcoin or for transfers from it, there are also anonymous coins they are also used for value transfer, but their protocols are different, they have different consensus systems where their main axis is to search for anonymity, security that does not know who the sender is and who receives the transaction or even the amounts, they are focused on anonymity, something that is quite important and something that is being looked for in this new financial world, they have not yet seen the most important of what they can come back to be,At some point in the future the anonymous crypts will have a need and will be much more desired than they are now, the market has not realized the potential first and second the need for them.
Another group are the utility tokens, cases such as ethereum, ethereum classic, eos, cardano, neo that are the most capitalized, is another implementation of this blockchain technology where what is sought is that these are platforms where all kinds of developers can build applications that are open codes where you can run infrastructures in code, serve as the central axis because of these platforms, also serve to transfer value but some others within their protocols give access to some other characteristics or qualities of the ecosystem, finally type of cryptocurrencies are the tokens that are part of a project developed on the infrastructure of a crypto utility.
Taking into account these four types of cryptocurrencies what we should do is analyze in a fundamental way that is the most important or attractive in these projects, know why they are the most solid, because they are the ones that most interest you and because they are the ones that Looking to the future, you would look for the end of the correction.
A number of factors have influenced the cryptocurrency correction. A number of big banks have banned the use of credit cards to buy cryptocurrencies, which naturally caused many of these buyers to exit the market to consolidate losses.