Is Cryptocurrency Dead?
No, really, is cryptocurrency dead? Or, is it just sleeping?
The traditional stock market is not in a good place right now. The news recently revealed that we had the worst Christmas Eve stock reading since the Great Depression, and people are beginning to panic.
For years, people wondered what would happen to cryptocurrency once the stock market would crash. It seems that we now know the truth. People are starting to pull out their investments and seek out safer options.
Sadly, it seems like this was a long time coming. Cryptocurrencies are starting to fold faster than ever, and people are now starting to wonder if crypto will die out. Some are even calling crypto a "dead investment."
Is cryptocurrency dead though? Or, are we just seeing a very interesting pivot in the world of blockchain technology? Let's take a look at the truth behind the concern...
People have always doubted blockchain, especially after the Bitcoin crash in 2017.
At the highest point of cryptocurrency trading history, Bitcoin was worth approximately $20,000 per token. The market cap was ballooning, and everyone was hoping to have a billion dollars in crypto soon enough.
Pop! Out came the crash. When it happened, Bitcoin's value shrank to around $2,000. Since then, it has stayed somewhat steady at $6,000 per coin.
The crash had a lasting impact on everyone involved, and it's an impact everyone has felt. For the first time ever, people started to ask, "Is cryptocurrency dead?"
The fact is that the Bitcoin crash put a lot of issues in crypto to light—including how people value it, how it's traded, and why we find blockchain to be a worthy investment.
It seems very doom and gloom until you remember the most glaring aspect of the crash. The fact that Bitcoin didn't die out suggests cryptocurrencies have some serious staying power.
ICO's are definitely looking worse for the wear, too.
During the major boom in cryptocurrency and blockchain technology, ICOs were the hottest thing to invest in. Every company rolled out their own ICO, just so they could get millions in investment money for their own tech concept.
At one point, almost every ICO was being funded by investors. Each ICO seemed to have a little success. Nowadays, the vast majority of ICOs fail, and many don't even make it to tokening.
One statistic said that around 80 percent of all ICOs fail. Needless to say, people are definitely getting leery of ICOs—but that doesn't mean that crypto is dead quite yet. In fact, knowing it's on the lower side of the spectrum is a reason you should invest in crypto now.
Value investors are still very anti-crypto.
If you were to ask anyone who wants to invest like Warren Buffett their opinion on cryptocurrency, you will likely hear them say they hate it. This is because investing in cryptocurrency is a fairly new concept, and it's extremely growth-oriented.
There are a number of reasons why value investors hate Bitcoin and other cryptocurrencies. It doesn't matter whether it's Bitcoin, Bitcoin Cash, Ether, or even Dogecoin. They hate it. Is cryptocurrency dead to these people? Of course! It was never a part of their world to begin with, and most likely never will be.
The many fiascos involving crypto's security problems further slowed down growth.
Anyone who remembers all the cryptocurrency hacks that happened in 2017 and 2018 can tell you that there are serious flaws in the crypto investment game. It's a large contributor to the bad reputation cryptocurrency has gained.
Major trading centers get hacked, people get thousands of dollars stolen from them, and there's only so much law enforcement can do. Is cryptocurrency dead because of this? No, but security breeches definitely dealt a bad blow to it.
Bad as the market's lull is, it's important to take things into perspective.
Cryptocurrency is definitely not faring as well as it once was. Most people who were part of the crypto mania of yesteryear are fairly sheepish when others bring up their old investing exploits.
Does that sheepish reaction mean that crypto is gone for good? Not quite. It just means that people who weren't supposed to be in the game are now learning their lessons.
Cryptocurrency's strength is what has kept it alive so far.
It would be a lie to say that crypto doesn't offer solutions to problem we have all struggled with. It's an easy way to seamlessly transfer money across the world in seconds, and also tends to be cheaper than regular transmissions.
This is a need everyone has, especially when it comes to international travel. Chances are very low that technology which allows easy money transfers will die out entirely.
Every new industry tends to have a manic moment, followed by a major crash and stabilization.
The sudden drop in price may have rattled investors, but the truth is that it's fairly normal to see. Most booming industries will have moments of extreme upheaval and volatility.
During these moments, what usually happens is that the value of whatever is being traded will plummet. Afterwards, it will slowly stabilize after a period of growth. Cryptocurrency and blockchain technology has been following this pattern pretty steadily.
If anything, this suggests that crypto may be here to stay.
There's now major corporate investment in cryptocurrency and blockchain technology.
Not too long ago, both mainstream investing houses and Fortune 500 companies would immediately turn up their noses to anything blockchain related. These days, they're beginning to sing a different tune.
Companies as big as Merrill Lynch, Facebook, and Microsoft have started to jump on the crypto bandwagon.
The technology that cryptocurrency often backs is pretty heavily needed, too.
It's important to remember that cryptocurrency is not just about trading cash around; it's a serious advance in technology. The digital ledger technology that comes with crypto is priceless, and has already made a huge impact in the banking industry.
Blockchain's digital ledger tech has made it possible to make a smarter energy grid, get better logistics for companies, and even cut down on banking problems.
There's something to be said about the value that crypto is bringing to the world. That alone suggests that crypto will survive for quite some time.
If you're wondering whether blockchain is dead, don't get too concerned. There's an entire economy surrounding blockchain and cryptocurrency out there, and even more ways companies are profiting off Bitcoin daily. People can now buy from big box retailers using Bitcoin, play games on Ethereum, and transfer money via Ripple.
While there are definitely issues in the blockchain world, the sheer amount of participation that the cryptocurrency economy has would prevent it from collapsing anytime soon. At this point, crypto is an institution—and it's one you should consider investing in.
About the Creator
Cato Conroy is a Manhattan-based writer who yearns for a better world. He loves to write about politics, news reports, and interesting innovations that will impact the way we live.
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