As we all saw on Friday the crypto market was a sea of red with portfolios loosing around 30% in a single day. Exchange and fiat gateways started to disable payments in certain currencies and people on Facebook were virtually slitting their wrists with panic.
As I mentioned in my last post HERE don't panic and everything will be ok.
So here we are on Christmas Eve in Australia and lo and behold and basically back up to where I was on Thursday. I'll actually be in an even better position once Steem and POWR get back to their right prices thanks to some well placed purchases.
So what was the cause of all this? Personally I think it was just institutional money taking some profits for the end of the year. And this leads me to a second point as to why Bitcoin will not survive as a viable long term currency.
Bitcoin with its tiny supply is VERY easy to manipulate, it take far fewer Bitcoin transactions to influence a swing of multiple percent rises AND falls. When institutional money can trade VAST sums of money, their influence to push prices higher or lower is much higher. If the supply of Bitcoin was 2 or 3 times higher, this would mean that the whales would need to control a MUCH larger stake to have the same influence.
With STEEM having 10times as higher circulating supply, it should theoretically have a much smoother flow of money with less massive swings as it theoretically 10times the volume being traded to create the same magnitude of swing as seen by Bitcoin.
Either way, just hold on, have a great Christmas and look forward to a stellar new year.