The news has been negative for crypto lately. Over the weekend, adding to the growing echoes on network congestion, technical uncertainty, and general talk about a 'crypto-bubble', there was a fake news that Vitalik Buterin had been killed in a car accident. As per below Twitter post, Vitalik is safe and sound. He has even found a new use-case for blockchain technology ('Proof-Of-Life') by posting a photo with the hash of a recently mined block!
credit: https://twitter.com/VitalikButerin
The negative sentiment convergence is just the kind of trigger for those who would want to lock in some of the (enormous) profits from currency prices over the last few months.
source: https://www.coingecko.com/en
That being said...the parade of blockchain based applications continues to march forward. In fact, one could argue they are cheap at current levels. The very pervasive Main Stream Media narrative of hacking and cybersecurity, should be viewed as a contributing factor to the strength in digital currencies. Yes there has been negative security news with things like Mt. Gox and the Ethereum DOA (which actually was a coding, rather than security issue, but nevertheless perpetuates the insecurity story). The irony is that MSM is also reporting on pervasive use of CyberWarfare weapons - both by nation states and criminal groups who have come upon them.
What kind of price reaction do we think we'll see if security of a few key financial institutions and systems were called into question? My guess the public will force politicians to point fingers and show legal audit frameworks were not properly followed. They will reassure the public that their government issued money is safe and security...reassuring sound bites as 'Rome burns'.
In the midst of such a scenario, or even if rumours and hits of the impending possibility of one, what will be the price reaction of Crypto currencies? I'm quite sure it will be much higher to the upside than the losses of the past days.
This post in no way intends to give investment advice, you should analyze and make the best choices for your particular case. I do however believe it is useful to consider the adage that warns of panic selling based on fear.
