Is this the end of bubbles on Bitcoin, cryptocurrencies and ICO? That’s what the co-founder Ethereum (ETH) Vitalik Buterin thinks. He told about it in an interview for Bloomberg.
Vitalik Buterin told Bloomberg:
“Blockchain space is approaching the point where you can see the ceiling … If you talk to a moderately educated person, you’ll probably learn that she has heard about the block network at least once. There is no chance for another 1000-fold increase in anything in this industry. ”
This is the end, there is nothing else?
Buterin may be considered a genius. As a person before the age of 25, he built a system that introduced not only business but the whole environment of cryptocurrencies and Blockchain into a new era. ICO projects were investment hits during the last bull market. Unfortunately, many of them turned out to be empty projects without foundations or even scams. Buterin himself has complained about the digital currency community. Maybe hence his pessimism?
Today, however, it substantively explains that the period of “1000-fold” increases has probably come to an end. Reason? In his opinion, the level of general awareness about the network of blocks, Bitcoin and other digital currencies has increased so much that increases – if they happen to happen – will not be as spectacular any more.
The creator of ETH, however, praises the existing community strategy based on the promotion of BTC and other currencies. It has led to a huge price increase and market capitalization over the past few years. Continuing this, however, is a “dead end.”
Indeed, the market can now see a fall in the market capitalization of all cryptocurrencies and tokens. In January this year market level reached USD 828 billion. After the new ATH there was a decline, which led to the current level of USD 198.8 billion.
Remember that the current level of capitalization is the lowest since November 2017. Despite the falls, the current data is still impressive. All we need to do is look at the fact that at the beginning of 2017 total market capitalization amounted to around USD 17-20 billion. The main cryptocurrencies were much cheaper than at present. Maybe it will not be so bad? Let’s also remember that Vitalik as a man is subject to the same psychological laws as each of us. Maybe he is touched by similar skepticism, which each of us is looking at cryptocurrency charts?
The bulls are still active
Roger Ver recently told Cointelegraph that the last bear market is nothing really dangerous. In his opinion, “it seems to be the opposite of the catastrophe.” It is hard to disagree, because “BTC has increased by 58% in the last year and 1048% in the last two years”.
At the end of August, Tom Lee of Fundstrat confirmed his analysis, according to which BTC may cost $ 25,000 this year. Almost as brave is Alexis Ohanian from Reddit and VC Initialized Capital, who believes that the main cryptocurrency may be worth 20,000 USD, and ETH 1,500 USD by the end of 2018.
How is it going to be?
Certainly, at the present stage of the bubble bursting (or perhaps its final break) calm should be maintained. Some investors even recommend playing against their emotions. This means that as soon as you start to feel the fear that BTC will never increase, it may be better to refrain from selling in such a stressful situation and stick to the previously established strategy (eg long-term investment).
We have already mentioned that Joost van der Burgt, an advisor at the Dutch central bank, said that the price of bitcoin would still be at least one correction before the start of the next rally up. The economist points out that real panic has not appeared on the digital currency market, but only fear. Everyone who remembers and witnessed the bursting of the bubble in 2014 mentions how fat moods prevailed in the market at that time. Now, after the bull market in 2017, we have not experienced a similar depression at investors. Optimism is still at a surprisingly high level. This may indicate that the worst is behind us and exceptionally we will go into a peaceful oyster, which will lead us to a possible new bubble for some time (remember that after the boom from 2013, we waited a record long time for the crypto market).
We suggest spending the next period on education, reading about digital currencies, careful investment of your funds and observing the moods of other market participants.
Remember that the above information is not investment advice. You play on the stock market at your own risk.?