According to CoinMarketCap the cryptocurrency market lost a collective $11,420,496,785. This might seem devastating at $11B is a lot of money even in a market like cryptocurrency. However, there are many positives that are coming out of the cryptocurrency market.
One thing to take a look at is the recent ICO funding trend which is currently mooning, new projects are still entering the market every single day. This shows that creating blockchain startups is still profitable and that dapps or decentralized applications are still of value. With the creation of ICO’s and decentralized applications, news projects have been able to appear and it is apparent that people are still interested in investing in startups.
Often times people will look at cryptocurrencies and shame it based on its volatility. Many known traditional investors warn others to not get involved into cryptocurrency because of this. Cryptocurrency is a very speculative market, however, when someone doesn’t understand something they oftentimes pin it to something they do know. So outside investors might look at cryptocurrency as a stock, and many will say cryptocurrency is in a bubble or over evaluated. On July 26th, 2018 Facebook’s stock saw a drop from $217 to $174. This is important because it shows that even traditional investments in “safe” companies can have violent swings. Facebook does have their stock tied to the company’s earnings however it yields a high P/E ratio. This makes an investment in Facebook even more speculative because the stock’s value is coming from innovations or partnerships that have yet to exist. Many features of the stock market are criticized that the cryptocurrency market potentially fixes like the cost of premium stocks, and pre IPO investments.
Cryptocurrency like other innovative technologies and assets need time to adopt. In order for cryptocurrency to become adopted, more projects need to enter the market and build platforms that can be utilized with the benefits of blockchain technology. This means more companies are going to need to accept payment assets like Bitcoin and more decentralized platforms will need to run on assets like Ethereum in order to make the cryptocurrency space scale. This comes at a number of different avenues including building on the actual blockchain themselves and developing more efficient ways to scale and perform.
Cryptocurrency is slowly developing and working towards mass adoption, but can’t get there without good development. When prices jump the gun without the advancement of the underlying technology downtrends occur. In times of downtrends, more coins can be purchased at lower prices which will, in turn, make a profit if the market for that asset recovers. If cryptocurrency is to be the future then the prices day to day won’t matter to those who are investing in the technology and are supporting its value long term.
A huge barrier to entry is the exchange market and the usability of transferring ownership between people whether it be buying or selling orders. If cryptocurrency is going to be adopted it needs to start with the usability, and people need to be able to exchange seamlessly without faulty problems. Bad technology and usability will drive more people away from getting into the market, and poor security and mismanagement of user funds will cause more people to leave the market. At Oodlebit we strive to push the innovation and drive for cryptocurrency because it starts as a passion for us. We believe in cryptocurrency and want a safe and trusted platform to help facilitate trades.