We are still too damn early
bitcoin manipulation? hostile cartels? bill gates shorting bitcoin?
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All could be true, but all are totally irrelevant to why crypto is declining at the moment.
as a matter of fact, the main reason why its such a rollercoaster is cause we are too damn early!!
now we crypto fans tend to forget about cause we talk, breath and trade crypto all day every day. but do try to explain how to buy crypto to an elder person. “first you signup on this one site and download id now and verify with ur passport and then you send bitcoin to this other site and …..”
most people turn around here.
crypto is just not user-friendly (yet)
when people use the internet, or apps they don’t know whats going on behind the scenes, they just press fancy buttons and things happen. this is how crypto will be someday and then we will have mass adoption or at least a base for an upcoming one. But this is just one part of the problems.
so whats going wrong at the moment?
Manipulation
Crypto is unregulated and tiny, a few big players can do anything they want right now. this will slow down with time and more transparency, but most important with a bigger market.
a study shows there’s only about 20–30% true capital of the fictional market cap in crypto. crypto is small, a few millionaires can pump or dump any coin they want. and there’s no point in blaming them, even a 1btc buy order can pump a hidden gem for 5–15% at smaller exchanges.
this leads me to the second problem
Fake prices
if I launch 1billion coins and sell just 1 for 1 $ ‘ve got a market cap of 1b $
is this really my project worth? of course not, and this is happening ALL over crypto all the time. if you try to buy or sell huge amounts of any coin you will fail to do so without turning the market in one or the other direction.
Theoretical wonderland
one of the most often discussed factors, whitepaper only or theoretical projects and the hype surrounding those.
blockchain is a future-oriented technology, everyone knows that. but often the future is misjudged, some aspects get blown out of proportion and others are overlooked.
for example in the .com bubble everyone was far too concerned how to make a profit from the bigger reach by selling services or product, and the real value of the internet the communication between people globally was undervalued. just with huge companies like facebook etc people truly realized how big that impact is.
we will see similar misjudgments concerning blockchain.
When we look at the internet evolution the biggest factor, in every modern business is the community. (uber, Airbnb, youtube etc) All of these platforms don’t do or offer anything, except a base to create, share or host content.
Revenue and capital
crypto is populated by a large crowd of inexperienced investors, while Wallstreet (tough being a manipulated ponzi scam) has a much older tradition and thus just a much much longer learning curve, crypto is just too young.
most crypto projects are theoretical, which makes it OK to not have any revenue, or functioning business model.
this gives the project that has 1 site and paper the same or even a higher standing as projects with actual product AND revenue!
this global misunderstanding will reduce a lot over the next years since we will see projects never exiting their theoretical stage and just go broke. while others that may not sound as fancy will do solid revenue and flourish.
Solid Projects I see having these factors are:
- Waves
“Issue, store, manage, trade, and analyze your digital assets safely with Waves blockchain platform and decentralized exchange.”
Waves are one of the most used blockchains with superb technical and user-friendly stats. when it comes to performance and user-friendliness I see waves at the top.
it also has a huge funding of about 200m$
some stats for waves:
with their new project Vostok, they will also enable a bridge between private chain/business and their decentral platform. but I’m gonna write an extra piece just about this.
http://wavescommunity.com/
https://t.me/wavesnews
http://twitter.com/wavesplatform
- Ethlend:
“ Decentralized and secure financial marketplace for peer to peer lending agreements using Blockchain and #SmartContracts.”
ethlend is another project with existing product and revenue, its a decentral p2p loan marketplace.
https://t.me/ETHLend
https://t.me/ETHLend_Official
https://twitter.com/ethlend1
- Restart Energy:
“The world’s first market-ready blockchain energy trading platform. Supported by the MWAT token. “
Another project tapping into the power of a community marketplace, this combined with an expressive revenue of 20m$
https://blog.restartenergy.io/
https://restartenergy.io/
https://t.me/restartenergy
https://t.me/restartenergydemocracy
https://coinmarketcap.com/currencies/restart-energy-mwat/
lets recap
-Crypto is still hard to use and purchase
-We have a small market that’s in the hand of big players.
-low liquidity leads to fake prices and overblown unreal volatility
-theoretical projects cloud the space, which makes all a huge speculation and drowns existing performers.
how bad is it? not very bad, there is one huge amazing thing that will and can solve all these things.
TIME
My advice is to take your time with this space, invest long term, don’t hunt for quick gains. it can happen but it doesn’t have to and mostly is pure luck.
find the true performing gems in this huge mess and accumulate hard.
time will reward you, and if you compare blockchain to the internet we haven’t seen anything yet. 100–10000x will be possible for the projects that survive this crazy space.
especially with so many bullish news, and regulation that’s kind of failing due to companies just leaving their home countries, we will see a more moderate approach soon.
hang in there!
thanks for listening ! feel free to share this everywhere you can if you dig it!
