Mining went to a new all time high.

Bitcoin mining at over 9 Exa hashes per second, Litecoin went over 22 Tera.

Rock bottom?

Well, if crypto mining is a sign, then it seems like Bitcoin is alive, more than ever before. And the traditional financial market might now cry victory all over the mainstream media channels, but have cryptos not been left for dead before...? Well yes, in fact I did lose count a long time ago. Are we done with the FUD {Fear, Uncertanty, Doubt} spreading yet then? No, this probably will go on for a few weeks. At least until those who have their crypto assets in the Chinese exchanges were able to pull out off there. Which might not be needed as the ruling apparantly only accounts for China mainland. The stupid thing being there that the Chinese government is destroying part of their own economy by doing so. Why? Because capital, that was circulating in the cryptos realm, will flow out off the Chinese economy and into anywhere else in the world.

It looks like that the Chinese government does not seem understand that now the Chinese people can not get money out of the cryptos market, their economy will take a hit. Cryptos have become an economical impuls, that many still have a hard time to grasp. If somebody receives payment in cryptos and she or he can now spend those earnings, then this will boost sales. It even will make the taxing governments happy. Even if those governments could not tax it right away, they can get all kinds of taxation in as soon as the cryptos are used for payments. It is just a way to transport value. For governments it is just another possible tax subject. And banks, instead of crying, they could jump in and get their share. Trade in them cryptos. It might sound the best, like when you can not beat cryptos, join them. Just like Apple and Microsoft embrased Open Source...

Next stop...?

Currently the cryptos market is in a free fall. It is almost like watching a count down. At the time of writing it is about to go below the 100 billion US Dollar mark. And as that currency is getting worth less and less, the relative value is even lower. At some point I probably should have better have bought some bitEURO at the Bitshares Decentralized Exchange. Yet, I forgot to do so. Guess my cryptos portfolio is now about 35% down. And to be honest I expect it to go way lower. Still, it is for the long term stored, so I just stay calm and will keep it where it is. The current trade is going at a 7% sell panic of the total crypto market cap. So it seems we are not done yet, it looks like a closing down sale. Which is basicly what is happening in China right now. And that could go on until the end of september, all the way into october. Where in november another Bitcoin clone might even make things go down more.

It is difficult to stop any panic. Sometimes it just needs to follow its natural path. If Bitcoin and Litecoin mining are a sign, than this will be something that is mainly a extreme temporary drop. And the crypto currency market will actually recover and then move back up again in a fast pace. Because a lot will want to get in on the next boost. And as there has been a huge cryptos sale, even Bitcoin will be up for grabs again. Litecoin might even be more interesting, or zCash and Doge. So far NLG, Gulden, did quite wel, yet that one took a hit too, just like most of the cryptos on the market. Somehow I think that 35% loss in value of my crypto portfolio is not the end of this drop. Not the time yet to shout: "BTFD {Buy The Fogging Dip}!" But I think I'll soon will do some more buying.

Survived 7 cents Steem value.

It would be like Bitcoin would drop to 85 US Dollar, or Litecoin would drop to $1.40 and even forget about Doge... It would be the best time to buy again, I guess. Steem has been at rock bottom, there are those amongs the community that will remember it vividly. Yet, it recovered. And even if it also now is taking a hit because of the overall panic, it still could get back to $1 within a few days. After the extreme panic is over, the only way is up. Now, this could be seen as an attack on cryptos, by centralized controled powers that be, like governments and the banks. And it has yet to be seen if and where this comes to a halt. After which cryptos have to regain strength and need even more capital to strike back even harder. Meaning trillions worth of US Dollars.

But maybe that is not even the solution. Because what the Chinese government tries to do is to make it impossible to exchange cryptos for Yen. So, that is where a possible weak spot lies for the whole of the cryptos realm. The part where it is still to be expected to be exchanged for bankers debt money like Euro or Dollar. That does not make cryptos a complete substantive alternative, but it still depends on the old financial system. And through that the banking money system, with help of governments, can still centraly control the cryptos. At least that is how the China measurements can be interpreted. Than a certain well known banker could be able to make the panic far worse with help of the mainstream media, as it seems to be all about timing. And I guess this FUD spreading by the mainstream media will go on for while longer. Finally it seems a hammer is found to hit the cryptos hard with. But those who where there when Steem hit rock bottom at 7 cents, will keep their cool.

Never a dull moment.

Whatever happens, it will happen for a reason and afterwards there are leasons to be learned. For me decentralized trustless solutions are the key in this all. And I do still believe that developements of things like EOS will help with that. It will be released and it will be a change for the good of the free and open sourced blockchain technology and cryptos. And when I look at a Decentralized Echange {DEX} like Bitshares now a lot of value is being moved towards pegged Assets like bitUSD, bitEUR and bitCNY. And maybe there is a solution to create a payment system, that does not even need to use the old financial system anymore. Relative stable values, like bitEUR and others, to be used every day. Not even needed to exchange back and forth to the old banking money system.

And while I was working on this post the crypto currency market actually dropped below the 100 billion floor. So I think I am not going to look at my crypto portfolio for a while. Never a dull moment in cryptos, but it also can be too much excitement. Anyway all this now seems to be a good time to remind you to only invest in cryptos what you are willing and able to lose. As your speculation might be as bad or as good as mine.

Have a great one!

Will there still be enough trust in Bitcoin and Cryptos?

image by MasterTux at pixabay, CC0 license.