Hey guys! welcome back to my blog.
Today we are gonna talk about the current blood bath, and carnage were seen in the Crypto currency space today.
So as you know guys for the past couple of weeks we have been having a downward trend, and today is another very very red day. With almost all crypto currencies on Coinmarketcap.com double digit red. And so i understand that this times are very emotional for many people, because many people have large amount of money invested in this assets. And waking up and seen your portfolio lose 20%,30% is really distressing and i mean.. its an awful thing. Especially if you just entered the market and your not losing your previous gains, but you are actually losing your starting capital. And one thing i think everyone needs to know and everyone should be aware of, is that this price swings have absolutely nothing to do with the technology itself.
The ethereum technology is still the same it hasn't changed when it went from $10 to almost $400. And it hasn't changed now when we went from almost $400 back to $200, Its all based on emotions,fear of missing out, fear of doubt and uncertainty. And i think many people are missing that, they think that something has happend when they see this red numbers. But in reality nothing has happend, no major negative news have come out and i think this enormous price swings are because people that are buying crypto currency are not that educated about it. They are seen their neighbor get rich, they are seen their friends get rich, Then they just jump on board and buy some ethereum for example or bitcoin. And they are not really sure what they are buying, but they know they are buying some kind of token online that can be used as money, But they are not using it as money they are using it as an asset that they hope will go up in value. And one day they wake up and see this red double digits down trend and because they have no knowledge base about what's actually happening, they don't know how ethereum works. They might not even know that ethereum is a platform of decentralized applications. They could be thinking that it is just a copy of re branded Bitcoin. So of course when one of this people wake up and see a red double digit number there is a high chance that person will panic and sell. because he or she think something has happend that the technology is bad or something else. And i think if you are educated you should keep an eye on the market of course that is very important, but you also should understand that the market has nothing to do with the technology. All of this swings are pure emotion in my humble opinion. And yes everything i say here is of course in my humble opinion and you should not take it too seriously, But i think it is all emotional and prices are still very very high. I mean in the beginning of the year ethereum was around $10 And now its $200, Of course it was at $400 but $200 is still a very high price in my opinion. You might ask why? because ethereum is still not being used the way its intended to yet. We still do not see any major decentralized applications yet.. They might come of course but not yet, Right now all we see is some ico's. And of course there is the fact that ethereum might switch from proof of work to proof of stake, which is very risky and we don't really know how that is going to work. They have been very secretive and low key about explaining how this is going to work So there is this huge uncertainty in the near future about ethereum and the price is still at $200. Just so you can get a picture switching from proof of work to proof of stake is basically switching the consensus algorithm which is the base for the whole network, its like when you are on a plane and suddenly the flight attendant says "guys we are just gonna change the engines mid flight, but that will be alright." And to be fair ethereum have been very clear about the switch to proof of stake, it is just that the investors and the general public are hyping it too much. And i think the reason of lack of awareness and knowledge is that this is a very immature technology still of course there is this grand vision, but it is still a long way to go, I really like the quote from Warren Buffett “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. Because we are seen this kind of drops and people are getting nervous this might be an opportunity.
But it is all speculation,no one knows for sure and i think you should be careful if someone tells you that "i know what the price is gonna be tomorrow" Because no one knows. The main point of this article is to tell you guys technology and the price are two different things, they have nothing to do with each other. I think it is going to be very interesting to follow this development i would like to hear from you guys. Why do you think we are seen thing huge moves in price? of course one reason that i pointed out is lack of knowledge, But this market could also be manipulated That is possible with such a low market cap. Of course claiming that the market is manipulated is conspiracy theory and we don't really have any proof about that, but it is technically possible. So please leave your comments if you think that is the case, or you have your own version of why we are seen such high swings. Is it because some huge players are selling off? or because small players are uneducated and don't really know what is happening and panicking. I would really love to hear you opinions.
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After 1st August BTC should go up. I don't know if altcoins will follow BTC but for sure they will recover after this big correction.
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