The early days of this year has been very rough for cryptocurrencies and anyone managing or holding these assets. Without selling of your assets, they have gone down by almost 70% and the weekend was another bloody time for cryptocurrencies as it dipped further to almost $290billion in market cap. When the year started, the total market was up above $800billion. That is over $450billion in money that has left cryptocurrencies this quarter. This has led to people expressing low confidence and doubt with cryptocurrencies and calling it a bubble.
There is a disruption in technology which is called the blockchain which I have talked about several times. The power of this technology to be very secured, fast, transparent and immutable has made it a choice for many companies to be reconsidering this area. And once blockchain is gaining the momentum, there is no doubt that cryptocurrencies will be performing well. The success of cryptocurrencies are dependent on the success of blockchain which is evident.
Dubai is aiming to be fully on blockchain by 2020. JP Morgan Bank is still developing and implementing their own blockchain. Kenya and Uganda are using blockchain for Land title Registrations. Business are using blockchain to easily track credibility of their clients. The blockchain is now being used to host server architecture and it is amazing what these are going to help businesses in the long run. More companies are realizing the importance of the blockchain technology. India, Russia, USA, Germany etc. are all seeing the great importance of the Blockchain Technology and these have cryptocurrencies on the side which makes it very great. The use in this technology will affirm the usage of cryptocurrencies. Now that we know that institutional firms are bringing more money into the crypto space. China are doing a lot with cryptocurrencies but on a very low key.
With these further developments in cryptocurrencies, there is no doubt that this has come to stay. There is a saying that whatever goes up must come down. In a market like this, you should expect this if you wish to play in this arena. It is extremely volatile and anything can happen but it boils down to your risk appetite. I remember pulling the numbers out in my previous articles here and the need for patience.
2018 is going to be yet another exciting year but not without hurdles. There will be a G20 summit this week and there would discussion about cryptocurrencies definitely. The future of it will be highly dependent on the outcome. A lot about regulations has been on cryptocurrencies. Certainly there will be lots of regulations on cryptocurrencies eventually but that will not stop it from still performing. The debate of whether they are securities or tokens still remains to be seen. Till then I will encourage you not to lose faith, Cryptocurrencies are here to stay and there has never been a better time to buy cryptocurrencies than during these times especially the infrastructure and great use case cryptocurrencies.
Don’t lose the opportunity to grab yourselves some cryptocurrencies for the future. Everything will eventually fall in place, that is the new wealth arena and the earlier you see the opportunity the best.
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