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Well, here we are. The Monday after a blood red weekend in the crypto markets. Today the market is green and people are speculating whether either another massive crash is coming and others are saying that everything is going to bounce back higher than it was. "What do you believe?" you might be asking. Well, I don't know. I have continued to buy and then stake coins throughout the recent crash, but I'm not sure that things are completely in the clear. The crypto market is wild and seem to have massive swings due to things as little as an Elon Musk tweet.
In this chart from coinmarketcap.com you can see how drastic the last crash was. About $750 billion left the crypto market in about a week. Despite this, the gains that many have made since December of last year vastly outweigh the losses we are seeing now. Some bears that I have seen are using this as a signal for the end of institutional investing in crypto. However the banking giant, Goldman Sachs said today that crypto is a 'new' asset class. This is great news for crypto because it could incentivize 'old' money to get into the crypto markets.
Over the last year, we have seen the crypto world rapidly increase in value. Much of this is due to the fear of inflation and institutional investing. However, China's cracking down on Bitcoin mining and other crypto currencies which could easily stifle the crypto economy and keep it from reaching its full potential. Other countries like Turkey and India have also talked about banning cryptocurrencies lately. These are worrying things, but it makes sense that a government is worried about people using money that they don't control. People don't like having power taken from them.
This brings up the most important thing about crypto as a whole. It doesn't require a central authority to make it work. Crypto takes up the slack that traditional finance has never been able to deal with. Crypto is able to be sent all across the world instantaneously whereas fiat has to switch currencies multiple times. This can take days to get from person to person. NFT's, Smart Contracts, Blockchains, Protocols and more are what make crypto make sense. More and more people are waking up to this around the world. I know I have only recently.
I'm not completely sure whether or not crypto is going to bounce back up to where it was, or if it is going to crash and burn. All I know is that I am here for the ride.
