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The "correction" of Bitcoin prices could stimulate a further adoption of cryptocurrency

We do not hide from the bloodbath that happens in the cryptic markets. Virtually every coin was sold as if there was no tomorrow. Bitcoin was an industry standard for value, but was slaughtered. In the last week BTC broke the support and traded below $ 4,000 USD. Many commentators compare encryptions with other financial bubbles.

The Mississippi and Tulip Mania bubbles are often used to describe price action in cryptographic markets over the last 18 months. Other people have used the collapse "dot-com". as an analogy for cryptos. A look at a chart will confirm one of these comparisons, which probably makes the crypts more than a little nervous.

Bitcoin Crashing

Bitcoin's death has been greatly exaggerated

Let's remember where BTC prices were when 2017 started.

Here is an article explaining how BTC exceeded $ 1,000 USD on January 1, 2017, a level it had achieved for the first time about three years earlier. Unlike in 2014, BTC went from a savage to nearly $ 20,000 USD over the past year, which was clearly driven by a speculative interest in retrospect.

Matthew Newton, who works as an analyst at eToro, commented that,

"Naturally the commentators have made a comparison between the current bear market and the dot-com bubble of the years", "and continued," While this is inevitable, I would suggest that it is not particularly useful. – it's a bit like proclaiming the end of the FTSE 100 at the end of 2008. One of the benefits of a bear market is to weed out people who are trying to make money quickly and are not interested in the underlying technology. technology and see its benefits tend to cling, adding value to the market ".



One thing that the fabulous increase in the encrypted has been able to achieve is the widespread public knowledge of the sector. Just like Internet actions in 1999, people all over the world were trying to encrypt to make their fortune overnight.

Bitcoin vs Dot Com Bubble

Read: Bitcoin vs. The Dot Com Bubble

Of course, the history of "easy money" always seems to have a rotten ending, which brings us to today. BTC's prices are still up by more than 370% compared to when they were in January 2017. Even if BTC fell to $ 1,500 USD, it would still have achieved a gain of 50% in less than two years.

In consolidated financial markets, this type of return is hard to find.

The long view looks incredible

There are many people in the crypto community who are long-term bullish in the industry. A positive view always seems naive in the grip of a bear market, but the bulls have every reason to be optimistic.

In the last two years the world has awakened to the miracle of the blockchain, and today hundreds of millions of dollars of development are entering a technology that had been extremely obscure only a year or two ago.

Angel Versetti is the CEO of Ambrosus and told The Independent that,

"I would not compare the current state of the encrypted market with the dot-com bubble" and, "While there are similarities in terms of new technological discoveries overestimated with unproven or unsustainable business models that were incessant in both dot-com and crypto , the real scale of cryptographic and dot-com companies is not comparable, I do not think we are or we have been anywhere near a bubble with cryptocurrency ".

The founder and the CEO make a good point, but like many people in the encrypted world, they might ignore the fact that large companies will not start using unregulated technology for payments and savings.

Money creation has always been controlled by a government, for the simple reason that it is an incredibly powerful social tool.

Blockchain and cryptos have certainly created the possibility of a stateless currency, but as China has shown, the powers that are not accepting a monetary system that they can not control (China does not even trust the US monetary system).

Who wins the race towards a new monetary system?

In the same way that most people do not know how to build or program a computer, there are very few who really understand the nature of money. Most people do not care, and just want to be able to buy a liter of milk or a bag of chips at the market.

For now, cryptos have a long way to go before they replace dollars, rubles, euros or any other legal tender with government support, and are supported by a central bank.

Interestingly, there are important banks that work with Ethereum and Bitcoin. BBVA used the Ethereum blockchain to close a syndicated loan, although they did not use ETH as part of the payment process. For now, it seems that most people involved in cryptos do not treat them as a store of value, nor as a means of transaction.

If there was a waiting market for cryptos as a means of payment, or if there was broad support for the cryptos at a certain price level (beyond the current trading interval), they would not be in freefall. At some point, the true value of the criptos will assert itself and the market will form a fund.

When that fund occurs, it will probably be the opportunity to purchase a life.

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