[0113] - Coin Market Rebounds, Proves Bitoin Is "Resilient Money"
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Everyone in crypto knows about the market crash that happened this week. The huge sell offs, the massive losses and the smashing of BitConnect. In fact the whole world probably knows about it in the negative press.
While the focus is on the carnage, there are a few positive ( and highly relevant ) points that are being overlooked by both the crypto commentators and the mainstream media.
Two interesting factoids stand out in my mind.
The first is that the crash only dropped as far as the December 17th market cap. Which was an all time high at that time. While the market shed billions, you have to reflect on the fact that all those lost billions were injected into the market in the last month. Just 30 days. Not months. 30 days.
That figure is astronomical. It brings perspective to point number two.
The second take away from the market crash is not how much the market fell. But how fast the market rose again from the ashes. At the time of writing, the total market cap has risen by $150B AUD, which is about half way to where it was before the panic began.
The market is rising as fast as it fell. Confidence has not been shaken in the market, only in certain people who invested foolishly.
If you add to two points together, you get a great snapshot of the coin market.
- The cryptocurrency market is swallowing huge ( and ever increasing ) amounts of investment money. And may top my 2T AUD prediction by the end of 2018.
- The cryptocurrency market is robust. It survives a crash better than any other asset class or investment class right now.
"The bitcoin craze" just proved itself to be resilient. Back in December when Bitcoin futures were listed on the first stock exchange, Bitcoin proved itself to be money. Now the crash has proved Bitcoin to be resilient money.
What will happen as a result of the crash? The crash marks a new chapter for digital currencies.
I expect there to be a new wave of investors get onboard. The finance world is watching ( blockchain ) right now, and are in awe, that Bitcoin has not only recovered, but has rebounded strongly. Robust and strong as compared to the fiscal insanity of negative yielding bonds.
Not only did Bitcoin rebound, it is climbing with momentum and more force than it had pre-crash. In my estimation, we can expect to see the total market cap and cash ceiling rise higher with new investment capital. Forming a new baseline for future crashes to fall too.
I think we will go close to topping the 1T AUD market cap in Q1 and break though to new highs. Which will mean a spike in coin prices, waiting for you to sell down on should you so choose to.
Thanks for watching,
Brendan Rohan - Indie developer of 'next gen' natural medicine from Melbourne, Australia
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DISCLAIMER: This article is written by an amateur investor and is offered purely for information purposes. This is not financial advice and you should always seek the advice of a finance professional.
I don't know why everybody is calling it a crash. Yes, it was a big and sudden drop. But as you point out, even if it hadn't rebounded, we were still better off than we were mid December. To me, that's not a crash. A crash is when we lose the lot. And if you can be mentally prepared for that eventuality, no matter how remote it seems, then you don't get stressed when it drops a bit. A tad disappointed maybe, but not upset.
I use that terminology because that's what most people think. That's how they relate to it. Any drop in value is seen as a disaster, so human beings being human beings, attribute the worst possible label to the event. In my folio, it was a crush, not a crash. We cleaned up. I hope I get that opportunity again some day, maybe next January when the annual "crash" happens.