Cryptogeddon - Bitcoin Breaks Below $7,000; Ether Down 75% From Highs
Content adapted from this Zerohedge.com article : Source
The carnage in the cryptocurrency world continues, going even lower since Friday's close.
Once again there is no clear catalyst but headlines from crypto world include South Korean and Thai regulators preparing to unveil their crypto-tax proposals (and notably the maze of details surrounding US tax requirements for cryptos may also be forcing some unwinds to cover unforeseen 'costs').
The Kazakh National Bank has banned crypto-mining and The FBI has issued a warning regarding fraud and cryptos.
Bitcoin went through the support level of $8,000 last week. Now, we see it crashing down through $7,000 meaning it is off 67% from the all-time highs.
Ethereum fared even worse down 75% from the high. This is the lowest market cap for the second largest cryptocurrency since November 2017.
While it is only prudent and smart for anyone entering the crypto space to proceed with caution especially when it comes to trading and investing in crypto assets, it would be unfair to be totally dismissive of what the Blockchain technology has brought about. The parallels with the dotcom bubble should serve as lessons to stakeholders.
One must remember that the aftermath of the dotcom bubble also affirmed that truly innovative organizations and technologies could weather the storm. Companies such as Amazon and eBay proved that pairing novel ideas with good business acumen can lead to success. Surely, the situation today with crypto and the environment of dotcoms from nearly twenty years ago would have their differences. Ventures must be able to navigate these nuances in order to make the best possible decisions moving forward.
Time will tell what comes of the cryptocurrencies that are on the market today. It stands to reason that some will be like Amazon and Ebay. Others will suffer the fate of groceries.com.
Non-adapted content found at zerohedge.com: Source
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