Downtrend in crypto market is making many people nervous, especially ones that have bought their cryptos at peak. I know that it is not easy to watch how your investment is melting and some cryptos are trading at 10% or less from their peak value.
If you just think that, to become positive at your investment your crypto need to rise 1000%, of course that many people are worried. I wrote in my previous articles that if you have invested in projects that will have or currently have important use case, you don't have to be worried.
Problem is if you have invested in cryptos based on TA, because price is going Up, and project have no sense and it was going Up because of some pump. Then, I wouldn't like to be in your skin...
There are many cryptos that are made just for fun or for making easy money with last summer's altcoin bubble.
This is free market and you can do whatever you want, but PROBLEM with this young crypto market is that all cryptos are treated same, doesn't meter if they are serious projects or fun or scam projects.
These kind of projects are damaging serious ones, because for regular investor who is just entering crypto market, all cryptos are same. Of course, at stock market also there are blue chip stocks and on the other side stocks of bad companies with bad business, but stocks of bad companies are not worth hundreds of millions or sometimes even billions of dollars like in crypto market.
Because of over hipped bed projects, lot of people are talking about crypto bubble. I don't think that we are in bubble, even at peak valuation from January if we look only major crypto coins.
This is why I HATE stupid data about total crypto market cap. We should take nice things from stocks market and at stocks market they calculate Dow Jones Industrial Average.
Dow Jones Industrial Average has consisted of 30 major companies.
This is how we should calculate crypto market also. MARKET CAP OF 30 MAJOR CRYPTOS. It would be much more realistic and much less dependable of shitcoins market cap.
This drop at crypto market is bad because interest in cryptos is much lower than before but for me it is very good long term, because it will shake off weak hands and it will separate good from bad projects.
PURIFICATION is necessary and it is not quick process. This needs time and not only bad projects will fall. Some good projects will fall also, because many of them are targeting same goals and only few of them will succeed.
First project made for fun was Dogecoin. I am sure that creator of Dogecoin couldn't even dream that at one moment, Dogecoin was worth almost 2 billion dollars!
Followed with exponential rise at DOGE, we got whole ZOO of different coins:
- Oyster PRL
- Ravencoin RVN
- Monkey Project MONK
- EagleCoin EAGLE
- Piggycoin PIGGY
- Tigercoin TGC
- MustangCoin MST
- Bee Token BEE
- Maverick Chain MVC
- RabbitCoin RBBT
- Birds Coin BIRDS
- Sharkcoin SAK
- SnakeEyes SNAKE
- PinkDog PDG
I could probably find few more coins for coin ZOO if I did more detailed search.
These coins are treated same like BTC, ETH, NEO, EOS... and many other serious projects.
Beside ZOO coins there are many other shitcoins that are destroying reputation of crypto market but I will not write about them today. I believe that you got my point and why is important to separate good and bad things.
First thing what we can do until projects develop and when real use case separate good and bad projects, is to calculate crypto market cap like DOW Jones, Top 30 Crypto market cap.
As of today, Top 30 Cryptos are:
Today's market cap of Crypto Dow Jones - Top 30 cryptos is 240 Billion dollars.
If you have any suggestion or opinion to share, I would love to discuss :-)