SATOSHICONOMY: Your source for Crypto Culture Content Curated with Consensus and Credibility
SatoshiConomy endeavors to report on The CryptoCurrency Ecosystem from a global perspective and for the good of all, so you have content with deeper underlying fundamental reasoning at it's core. None of this article constitutes financial advice: simply info to assist you in making your own decisions. Now you have a relevant and reliable source to help you make more informed choices within your CryptoSpace.
CryptoCurrencies completely disrupt the manner in which the financial world transacts money. Its niche is fast paced (to say the least), exciting, innovative, powerful, and my favorite: it brings power to the people.
The fundamental reason for this historic global disruption is that the CryptoCurrency Economy is an OWNERSHIP-BASED economy as opposed to the present global DEBT-BASED economy. This in itself turns the present financial technology on its head.
But recently, there's been a 48% drop in the Crypto Market, and i needed to know "why?" At first, i found it difficult to ascertain why, because most of my usual sources for expert analysis, commentary and specialty curation were only reporting on the numbers and data, and NOT "why?" So i searched deeper, and here you will find the reasons why this HUGE correction has taken place. If you have additional plausible reasons, please feel free to comment.
SEVEN REASONS WHY THE CRYPTO MARKET CRASHED 48%
At the time of this article, there's been a 48% drop in CryptoCurrency Total Market Capitalization in the 26 days from June 20, 2017 (@ $117 Billion) to July 16, 2017 (@ $61 Billion). *CoinMarketCap.com
To begin, we know that CryptoCurrencies are truly global in nature, so the reasons for it's growth, and likewise, it's downtrends, are many.
1) Over Exuberance. The single greatest reason for this pullback has been recent Crypto over-exuberance and the resulting "after effect." In ten weeks time from April, 2017, to June, 2017, the Total Global Crypto Market Cap went from @ $25 billion to @ $117 billion. So it took over 8 years to reach $25 billion in popularity in April, 2017, then only 10 weeks to add $92 billion on top of that by June, 2017. Hind sight is 20/20, and it's obvious there was over exuberance and FOMO (fear of missing out).
2) Infancy and Growing Pains. Bitcoin, which comprises @ 50% of the market cap of Cryptos, has about 5,000,000 accounts on the BlockChain. Only 1% of these accounts have more than 1 Bitcoin (50,000 accounts). To visualize an example, this means that there would be about 67 people in a city the size of Chicago with 1+ Bitcoins as compared to the global population. This space is STILL very new, and along with the newness comes volatility and growing pains.
3) Greed. Along with greed is it's brother impatience. A lot of people put a lot of money in as it was going up, to make a profit-which they did-and then as it was plunging, many people exited with their profits, which in turn fed more sell offs. When more Cryptos are sold than bought, the prices go down.
4) ICO cash outs. Initial Coin Offering players threw a lot of money into the new Cryptos coming on board, then cashed out quickly in a classical, initial-offering-type-scenario. This of course is similar in nature to point #3, yet in a different segment of the Cryptos as a whole. This segment is primarily related to the Ethereum Crypto and its token-based platform.
5) Conspiracies. With the sudden onset of Crypto popularity, there is definitely a counter-force out there which will fight back against Cryptos with FUD (fear, uncertainty and doubt). This space is serious business with ALL major corporations following Crypto's growth. Of course, we all know that because of the disruptive transitions which Cryptos will continue to cause, there are many current major players which will naturally fight against it. Btw, they are known as "legacy."
6) Manipulation. Let's not be ignorant. There are certainly more than a few major players throwing around some billion here, some billion there to affect prices.
7) Uncertainty. Bitcoin faces a possible split into two competing coins within the next few weeks because of new scaling proposals which will definitely be implemented as a progression to its evolution. Right now there is no sure way to tell what will result. In the meantime, many are selling their Bitcoin for other Cryptos, or flat out exiting the Crypto space by trading their Bitcoin for fiat currencies while they "wait and see."
There are several other viable reasons why this correction has taken place such as disillusionment of new adopters, the lack of the Crypto community to keep up to pace with improvements to match the expectations of its new adopters, and others.
But just think about all the participation and expectation which is waiting on the sidelines right now! The exuberance we saw has proven that there are many who want to participate. Don't be one of the naysayers or doubters who are saying to "stay away." Those naysayers just don't know yet what YOU know.
Crypto's time has come for sooooo many reasons, and in my opinion, this space presents the single greatest opportunity in decades to improve the lives of humanity through innovation, as well as the greatest opportunity for wealth for the common man in the history of mankind!
Cryptos are a Truth Platform for transacting money. They eliminate lying-imagine that! Cryptos eliminate the middle man and their unfair profits and controls. Cryptos enable people without a bank to transact person-to-person with anyone on the globe with just a cell phone and an e-mail account. Cryptos are fundamentally NOT a debt-based economy-it's an OWNERSHIP-BASED economy! Cryptos practically eliminate inflation or vastly minimize it-WOW!
So even though there has been several reasons for the recent correction, this has been healthy, and knowing the reasons behind this drastic correction will help us understand the nature of this space and therefore give us an edge for future investment choices within the Crypto Market.
LOVE ALL, SERVE ALL
SatoshiConomy
