Even though the cryptocurrency prices are falling, this is the time to buy and capitalize on the market situation.
Fred Wilson, Silicon Valley venture capitalist, had in early January encouraged the cryptocurrency investors to sell off their holdings, but now believes that this is the time to buy cryptocurrencies. Bitcoin would reach the bottom very shortly and the current hatred for Ethereum will propel it for bull-run soon. So investors should buy Bitcoin and ETH.
Since January, Ethereum has been coming down to settle at $130 from over $1,400. The fall culminated in the market cap value of ETH to fall from $120 billion at the year beginning to $13 billion in the present. Most of the Digital currencies have shared a similar fate. Bitcoin witnessed a drop to $80 billion from over $230 billion.
Cardano (ADA) fell massively to find itself at below $1 million. The altcoins that were witnessing the bullish run including Bitcoin Gold, Qtum and ICON are falling as well. Since the turn of the year with the fall in cryptocurrency prices, the crypto market has depreciated by $700 billion.
In the past, similar drops have been witnessed by crypto space. Bitcoin performed badly from 2011 to 2014. Ethereum was at the worst in 2018 beating the bad record of 80% fall from 2016 to 2017, as cited by Bitcoin Exchange Guide.
Some of the medium-sized miners in China’s Xinjiang and Mongolia have sold their mining machines in the second-hand market. This is due to the miners not being able to cover the electricity costs while mining currencies. The mining models, as Avalon A741, and Antminer S7, T9 [mining machines] have fallen to shutdown price, as cited by Coingape.
Finextra reported that the subsidiary of the GSX Group-Gibraltar Stock Exchange Group, Gibraltar Blockchain Exchange (GBX), successfully attained the Gibraltar DLT – distributed ledger technology provider license from the nation’s Financial Services Commission (GFSC). GigaWatt the provider of turnkey mining services and also custom packages as per clients’ needs offering a complete range of mining services as equipment sales, maintenance and repairing of the private blockchain, now has filed for bankruptcy. The company failed to bear a crash in cryptocurrency market values and two class-action lawsuits – fraud and impropriety in its “initial coin offering.”
Despite the bad news, the good news is that Bitcoin is competing to overtake the number of daily transfers of MasterCard. Bitcoin daily transaction is nearly 73% to of $11 Bn of daily volume of MasterCard’s. So capitalizing on the cryptocurrency Prices may be a very good idea.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]