It’s been quite a year for cryptocurrency and blockchain technology. Those of us heavily invested In the altcoin markets took a heavy blow, especially in the last few months. The market sentiment right now it is still quite negative mostly because we are too focused on price action instead of technology and its potential for the future.
Many people invested in 2017 thinking they will get wealthy very fast, instead of that Imaginary Lambos disintegrated quite rapidly in 2018 bear market. Regardless the current state of the market is always important to remember that price action usually does not reflect the state of the tech.
We Are Still on The Very Early Stages
By this point, many people have heard about bitcoin and a few about etherium, but so little people outside the crypto world have a basic understanding of what these technologies represent and their potential for the future. I firmly believe that some of the newer blockchain protocols will soon start showing real use cases people can relate to and that are meaningful in the real world. If you invested last year or are investing right now, you are still in the minority of people exposed to this market. Don’t let fixation on prices influence your decision making processes.
Blockchain technology is here to stay
We can’t know what projects are going to be around in the future and who is going to be the Amazon of blockchain technology. Still, it is clear that these technologies are going to improve many inefficient processes and probably induce profound social changes in the fabric of society.
Borderless private currencies are just the tip of the iceberg. Not everything needs to be decentralized, but many processes in government, fintech, and the corporate world can improve with blockchain technologies. Many projects are already showing the way on this area. This industry is in diapers.
This Correction was Healthy and Necessary
The growth of the cryptocurrency market in 2017 is pretty much unprecedented, that’s precisely why this market has become so problematic in many ways. From ICO teams who don’t feel any obligation to be transparent with their investors to Ponzi schemes that run away stilling millions of dollars the crypto market has become a jungle. Many of this aspects are about to change due to better education available online and increasing regulation from governments.
Considering the level of exuberance in 2017, a massive correction was overdue, yet historically bitcoin has recovered every time. This time we may go as lower as 80% or more, but with many catalysts coming up in 2019 we are sure to see optimism back in the game. It is quite clear that any seasoned investor would not buy BTC at 18k, but as bitcoin price lowers professional traders and investors will take an interest in this market.
Don’t Fall Prey of Mob Mentality
It takes only a quick visit to your favorite subreddit to feel the saltiness and disappointment of many investors who are looking somebody to blame for their poor financial decisions. If you invested near the end of 2017 good chances are you are down 90% or more, my question to you is: do you believe in this project for the long run? Because you have the chance right now to double or triple your position with a relatively small sum. Now is not the time to salty, it’s the time to be greedy.