Introduction
The cryptocurrency market is currently experiencing a correction following a strong run-up in 2017. Despite this, many in the cryptocurrency world remain bullish about the long-term prospects for cryptocurrencies. To be sure, some market observers believe that cryptocurrencies are experiencing a speculative bubble that will burst. Historically, new assets such as gold and oil have experienced similar boom and bust cycles before becoming valuable assets. As more people use or invest in cryptocurrencies, they will likely become stronger assets.
The cryptocurrency market is currently experiencing a correction following a strong run-up in 2017.
The cryptocurrency market is currently experiencing a correction following a strong run-up in 2017. The market peaked at USD20 billion (from approximately USD15 million in 2011) and has now declined by more than 70%. Bitcoin’s price has fallen from its all-time high of nearly USD19,000 to around USD3,500 today.
Other cryptocurrencies have also experienced significant declines: Ethereum is down from its ATH of nearly USD1,400 to around USD100 today; Litecoin is down from near ATHs of near US$420 to about US$60; Monero from near ATHs above US$300 to about US$100; Dash from near ATHs above $1000 per coin down below $200 at times this year entering 2019; Zcash from an ATH over $4k per coin last week down below $150 today with little support left within its current range (lowest price may be between $50–200 depending on how long it takes); etcetera ad infinitum…
Despite this, many in the cryptocurrency world remain bullish about the long-term prospects for cryptocurrencies.
Despite this, many in the cryptocurrency world remain bullish about the long-term prospects for cryptocurrencies. One reason for this is that cryptocurrencies are still a new asset class and are only beginning to gain mainstream adoption. The Nasdaq Composite Index was founded in 1971; it took more than four decades for it to reach 5,000 points for the first time. In contrast, Bitcoin was created just 10 years ago and has already achieved this milestone (as well as several others).
Another reason why some feel optimistic about crypto’s future is because of its potential as an alternative store of value and medium of exchange. Like other currencies, cryptocurrencies allow users to buy goods or services online with little friction compared to current payment methods such as credit cards or PayPal.
To be sure, some market observers believe that cryptocurrencies are experiencing a speculative bubble that will burst.
As a trader, I know that bubbles are nothing new in the cryptocurrency space. There have been many of them over the past few years, and each time they end up popping as investors get disappointed by a lack of progress or become scared by negative market sentiment.
But despite all of these bubbles, cryptocurrencies aren’t going away anytime soon—and they’re not going to disappear because of one busting bubble either. Crypto is here to stay, and it’s only gaining momentum as more people enter this space and learn about its benefits.
So remember: don’t let anyone tell you that crypto is dead! It may seem like things are slow right now—but that’s normal for any market when we’re experiencing a bear cycle
Historically, new assets such as gold and oil have experienced similar boom and bust cycles before becoming valuable assets.
Historically, new assets such as gold and oil have experienced similar boom and bust cycles before becoming valuable assets. Gold has been used as a medium of exchange for thousands of years. Oil is just over a hundred years old as an asset class but that doesn’t mean it hasn’t also experienced booms and busts.
Both gold and oil have become increasingly scarce due to increased demand from emerging economies like China and India; this demand makes them more expensive which can increase their value as an investment choice. The price of both commodities has fluctuated over the past 10 years or so, however it looks like they’re on the rise again!
As more people use or invest in cryptocurrencies, they will likely become stronger assets.
As more people use or invest in cryptocurrencies, they will likely become stronger assets. As a result, the value of these currencies should increase over time. This makes them good investments for long-term investors who want to make some money while also helping to improve a growing technology that could have a big impact on society.
The cryptocurrency market is going through a strong correction right now but it may recover over time.
The cryptocurrency market is going through a strong correction right now but it may recover over time.
Cryptocurrencies have gone through what’s known as a boom-and-bust cycle, which means that the market has experienced an explosive run-up followed by a crash that wiped out many investors’ money. The current correction is just one example of this cycle; it follows the booming run-up in 2017, where cryptocurrencies like bitcoin rose from $1,000 to nearly $20,000 in just 12 months!
Conclusion
Since the market for cryptocurrencies is still in its infancy, it’s difficult to know for sure how the market will recover. However, we can take some comfort from the fact that similar assets have experienced similar corrections in their early stages before becoming valuable investments. As more people use or invest in cryptocurrencies, they will likely become stronger assets.
