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What a difference they can make a few weeks.
Just 21 days ago, the price of the bitcoin was trading above $ 8.400, riding what many seemed to be the first wave of a new bull market. The fund, analysts said, was inside
Now, in mid-August, bitcoin is only fighting to hold over $ 6,000. The altcoin markets, meanwhile, were punched. The ethereum price is down 18% for the day and doubles that for the week, while the price of ripple has now fallen by 93% from its all-time high.
Speaking with CNBC, Meltem Demirors, Chief Strategy Officer at CoinShares, a British investment in cryptocurrency, has attributed part of the sale to the difficulty that the industry is presenting to investors to investors a coherent narrative he is hot.
The only metric we have for most cryptocurrencies is price, and the price is such an imperfect metric. What aspect does it actually use? This is the fight to encrypt right now. "
At the same time, the bear market presented startup blockchain financed through initial coin offerings (ICOs) with a difficult choice: to sell their assets now to preserve any runway they left, or to continue doing business at indefinitely in the hope that the market can finally turn its back.
"What we are seeing now is that many of these international organizations that have raised capital have done so using ether or bitcoin. When the price was $ 1,200, everyone felt really good. They had a long runway of capital. Now the price is $ 300, they do not feel so good, "he said." I think this is really what our ecosystem is struggling with. How can we allocate outside of ETH and in other assets that retain long-term value and what should these assets be? "
The protesters compared the fluctuating ratings that bitcoin and ethereum have seen with those experienced by revolutionary tech companies like Amazon, Microsoft and Intel at the turn of the millennium, explaining that many investors in these companies have been forced to wait a decade or more to see the value of their break-even investments, even after the dotcom bubble. Patient investors, however, were widely rewarded.Â
"The new technologies that move the paradigm take a long time to really understand. I think that what we saw in the crypto is that we saw this huge run-up, where everyone got the FOMO, "he said," and what caused it is the speculative bubble …. But all this capital is now used in construction of real companies that have a real purpose. "
" We are starting to see real traction, "he added.
Close-up image of Shutterstock
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