Man ‘o Man, 2017 has been an interesting year for cryptocurrency. Of all the coins Bitcoin has been in the spotlight the most. Last year the price of the “old” coin reached unprecedented highs. Everyone took notice even those who called Bitcoin and altcoins scams and pyramid schemes.
Investing in Bitcoins and altcoins became a hot topic fueled by the extreme profits made by early investors. ICOs (Initial Coin Offerings) are booming and selling out like hot cakes. The prices of other altcoins sky rocketed.
FOMO (The Fear of Missing Out) spread around the globe like wildfire.
The increasing interest in cryptocurrency was met with resistance from governments and conservatives. China and the U.S. among others announced to take action against crypto and followed through on their threats. Korea also announced their intentions to crack down on the so called “crypto craze”.
The true intentions for the interventions will always remain unclear, is it to protect the citizens against risky investments? Is it against the law? A more likely argument why there is distrust against cryptocurrencies from the authorities is that unlike stocks for instance, crypto is unregulated and decentralized. This means that it is very hard to control flow of money being poured into crypto projects.
The efforts from the media to dissuade people from investing in crypto only seems to fuel the hype.
Bitcoin is the most prominent coin among cryptocurrency, it is the coin that decides the fate of other altcoins. If the price of Bitcoin goes up so does the price of other altcoins, if Bitcoin crashes, it takes other altcoins down with it.
Bitcoin is the lead actor (or actress if you like) in a movie called “ From Rags to Riches”.
Every time the price of the coin reaches new heights it is headline news. Last year it seemed like the only direction Bitcoin went was up.
This momentum reached its peak in December when the bitcoin price shot upwards to $20,000. This was also the point that a lot of new investors joined the wild, wild world of crypto.
Then correction happened….fueled by future trading, news about governments banning the trade in cryptocurrency, scam scandals and uncertainty...The Bitcoin price went into a free fall. The price of Bitcoin reached a low of $6,000 and all the other altcoins plummeted to now lows.
The “new” investors who bought cryptocurrency in December saw their investments vanish before their eyes.
Analysts were quick to point out in January that the dip happened every year around the same time. It was not a thing to panic about, it’s just the way the cryptocurrency market behaves. It is time to HODL and have faith in the market, what comes down must go up, more than Bitcoin would rise up with a vengeance.
But the crypto dip still continues, HODLers are anxiously watching their Blockfolio app to see when the market will regain its strength and the good times of daily increasing profits will return.
Will Bitcoin be able to reach new heights in 2018? How long will the current dip last?
Let me know in the comment section what you think.
These are posts by @tspink in the #xervanteschallenge. Go give my man some support in his efforts!
