The last two days visiting the site Coinmarketcap and applications Blockfolio hardly brings joy to most holders of cryptocurrency. You have already heard from colleagues or relatives the phrase “I told you that bitcoin is fraud” or “HODL”.
But if you really believe in cryptocurrency, then the red numbers next to the name of the coins should bring you relief. Of course, no one likes to lose, and it would be great if bitcoin continued on his way to the moon. But let’s admit that the growth of the Crypto-currency in recent months has been unnaturally fast. And in the end, we could see only two scenarios of what was happening.
The first is what is happening now – correction. The current price reduction is quite comparable in speed with the previous growth. Prices are falling, people, disappointed with the situation, are selling their coins. At some point in the market, there will be an equilibrium between those who want to sell and buy. And if we do not get bad news, we’ll see growth. Probably not as fast as it was before.
The second scenario is the collapse of the crypto-currency market. This is possible because of the news. Significant, for example, that several large countries have united and banned the cryptocurrency, or that Satoshi Nakamoto sold all his bitcoins. Or smaller, but following the contract and putting pressure on new owners of crypto-currencies.
If now the events developed according to the second scenario, then we would see a much more serious drop than 15-30%, which we see now. And if this happened, most likely, we would not even be able to know the level of the fall, because the exchanges and tracking sites would simply stop working. Whatever it was, but the second scenario is less likely.
Let’s admit that the market of crypto-currency is simply overheated. Many claimed that the market was overvalued when bitcoin first reached $ 2,000. That was eight months ago. When the market capitalization reached $ 500 billion, Vitalik Buterin expressed doubts about whether such an indicator is deserved. “How many decentralized applications have been created? How many people who do not have access to banks began to use crypto-currencies? “And other questions to slogans that were published on the front pages of most ICO projects.
So total cryptocoin market cap just hit $0.5T today. But have we *earned* it?
— Vitalik Buterin (@VitalikButerin) December 13, 2017
This tweet was published a month ago. Now, after two days of intense sales, market capitalization has only become slightly less than $ 500 billion. If you really believe in crypto currency, you should be glad that prices have approached reality.