Don't Get into a 'Penic Mode', the Major Cryptocurrencies Will Here To Stay including Steemit!
According to CoinMarketCap data, Bitcoin tumbled 28 percent in January amid a widespread sell-off that saw just a third of the 15 largest cryptocurrencies by market capitalization rise for the month.
Image Source: Jaap Arriens | NurPhoto | Getty Images
The overall market capitalization of cryptocurrencies dropped 40 percent, to about $500 billion at the end of January, from a record hit earlier in the month of $832 billion, as reported by CNBC.
The digital currency started off in 2017 with a value of around $800, but, by the end of the year, was probably the highest-performing investment anyone could have ever made, as it reached dizzying heights of $19,783 in December.
Such gains are enough to make the most well-heeled Wall Street sharks giddy with glee.
Change in market share of bitcoin and other cryptocurrencies over the last three months.
While bitcoin's central role in the crypto market is undeniable, it is arguably in its own speculative bubble within the larger market, which contains more stable alt-coins.
If bitcoin's bubble was to burst, it would inevitably stagger the $700bn market, as it occupies about a third of it. Also, many exchanges use bitcoin to buy and sell other cryptocurrencies or to convert them back into fiat.
But investors are now diversifying their portfolios by buying other, arguably more stable cryptocurrencies that could absorb any blows that may shake the bitcoin pillar.
Due to cryptocurrencies being used as decentralized tokens to execute transactions on blockchains, and considering governments and corporations are partnering with these blockchain developers who actually provide a service, investors see value in buying up other cryptocurrencies.
Investing in cryptocurrencies that form part of a service ecosystem, rather than solely offering ethereal tokens that have no real, fundamental value, could prove to be the new stocks and shares, as blockchains move from being perceived as "just a fad" to a mainstream technology we all rely on in our day-to-day lives.
Unlike bitcoin, blockchain as a service that is directly applicable to our everyday lives is unlikely to simply collapse, especially considering its adoption by big players who clearly see a future for the technology.
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Of course, cryptos are here to stay for sure (at least as an asset class like gold). May be we just need to add a mechanism to have a check on the so called 'scam' coins.
rightly said vishal...