Cryptocurrencies are crashing, again. Prices are falling like a rock and many investors, retail and institutional alike, are heading for the hills. But they’re not quite leaving forever. Crypto is here to stay, so long as we can come up with reasons why it hasn’t died yet. The listicle might be getting old, but there’s still some truth in the premise: Cryptocurrencies have been through similar crashes before and have always bounced back stronger than before. Here are five good reasons why cryptocurrency has not truly died just yet.
It’s Only Just Getting Started
Cryptocurrencies are still in the early stages of their development. They have been around for a few decades now, but have only gained mainstream popularity in the past few years. The market capitalization of all Cryptocurrencies combined is still relatively small when compared to other large financial assets like gold or stocks. It’s only been a few years, and it’s only going to get bigger in the long run. In the short term, there are bound to be hiccups. At the end of the day, it’s still early days for the cryptocurrency market.
Just look at how many industries and industries are finding ways of integrating cryptocurrency into their day-to-day operations. Institutions, large and small, are getting on board with the technology. This is surely going to bring in a flood of new capital as more investors look to get in on the action.
The Blockchain Is Secure
While the introduction of new Cryptocurrencies has been plagued by scams and frauds, the blockchain that underpins them is incredibly secure. The decentralized nature of blockchain technology means that it is extremely difficult to hack, which makes it an attractive proposition for those looking for a robust method of storing and trading Cryptocurrencies. The same can be said for other Blockchains out there. The technology behind all of them is extremely robust, making them all equally attractive. Trading on BitcoinX and other exchanges isn’t spied on by any authorities or individuals.
It’s A Store of Value
At the end of the day, what is it that makes Cryptocurrencies so popular? It’s that the technology that underpins them is incredibly innovative. The underlying blockchain technology has the potential to revolutionize a wide variety of industries. It allows for trustless transactions, which means that neither party has to worry about being cheated. It also allows for more efficient and cost-effective transactions than conventional payment systems.
The potential applications of this technology are limitless. The same can be said for other Cryptocurrencies. Bitcoin was the pioneer of crypto, but it was far from the first to be created. Numerous Cryptocurrencies have been created since then and Bitcoin is no longer the only game in town. You might not see Bitcoin or Ethereum as the future of money, but there are plenty of other cryptos out there that you can invest in.
People Trust It
Whether you’re talking about the future of money or the future of trade, one thing seems to be clear: People trust blockchain technology. The reason we’re seeing so many Cryptocurrencies created is that people are excited about the potential of blockchain. Just the other day, a study was published that shows that a whopping 97% of institutional investors are planning to invest in blockchain in at least one industry. A lot of people have taken notice of this. The price of Bitcoin and other Cryptocurrencies has recovered not because people have suddenly rediscovered the idea of blockchain, but because people have suddenly taken notice of other uses for the same technology.
There Are More Cryptocurrencies to Be Created
If you’re worried that the market might be dying, you might want to consider the fact that more and more Cryptocurrencies are being created all the time. The market might be extremely volatile, but it’s important to remember that not all Cryptocurrencies are created equally. Some are created with a specific purpose in mind and are therefore more reliable than others. Additionally, some of them are much more promising than others. And the best thing about these new Cryptocurrencies is that they are being created at an extremely rapid pace.
Cryptocurrencies might be crashing, but they’ve survived worse than this. They’ve survived dips in price, scandalous hacks, and government bans. And, they’ve survived something that a lot of people think will kill them for good: Investors. When people try to get out of the market, it’s an indication that the cryptocurrency is in trouble. But, when people try to get into the market, it’s an indication that the cryptocurrency is getting ready for a big breakout.