First, about the adrenaline. Do you know what happens to the body with a sharp increase in this hormone? It mobilizes, collects maximum energy and for some time works at the peak of its capabilities. Keywords - for a while. Then comes the phase of exhaustion: a breakdown and apathy is manifested. The body needs time to recover.
Sound familiar?
Something like this is happening now in the cryptocurrency market. At the end of 2017, he, as they say, “grabbed” adrenaline and hypanul in all directions. Capitalization rose to $ 800 billion, and the Bitcoin exchange rate hit the mark in 20 000 $. Now, when capitalization has rolled back to 300 billion $, and the cost of the flagship fluctuates around 8 000 $, skeptics were inspired and talked about the bursting bubble and the collapse of the crypto world. Only in a few months the crash never happened. Only natural apathy occurred.
And instead of dumping assets in a panic and making pessimistic predictions, it is better to look at the facts objectively. And they are, and they are interesting.
Was there a bubble?
Some people compare the rollback from 800 billion to 300 billion to the situation on the dotcom market in 2001. But what is the 800 billion in the global economy? When the Dotcom bubble burst, their capitalization exceeded 6 trillion. $, And there really was something to bang.
And the young crypto market also did not manage to “pout" properly.
Regulation cannot be prohibited
Yes, the very effect of a correctly placed comma.
Let's get back to the adrenaline analogy. If the series of adrenaline explosions and periods of fatigue continues, the body simply sways on these hormonal swings, and it will give a systemic malfunction.
To protect the cryptocurrency market from such swings and failures, you need competent regulation: determining the legal status of cryptocurrencies, legal security of market participants, mechanisms for dealing with scam schemes, and much more. A kind of StopAndrenaline. With this approach, fraudsters will find it much harder to hide with millions of investors. Yes, and the courses are likely to stop jumping due to a sharp change in demand caused by the next news. And not the fact that reliable.
Yes, perhaps due to regulation, market volatility will decrease, and making money on hype will become more difficult. But then there will be more stability, which will create the basis for balanced investment and development in the long term.
Now the market is clearly moving towards regulation, even though at first it stumbles on prohibitions.
In a serious market - serious investors
Speaking of investors. Who were the first cryptocurrency holders and the first market participants? Experienced investors, bankers and big owners? Not! At first, cryptocurrencies were only interested in digital enthusiasts. Later, traders and financiers came to the market, but even among them there were almost no sharks of stock exchanges moving billions. Still, capitalization was striving for a trillion.
Now, when the market has regulatory mechanisms, very large investors have begun to show interest in the crypto industry. With their arrival, the market will receive a decent boost for growth.
Blockchain becomes practical
While pessimists theorize, pointing fingers at declining courses, practitioners integrate blockchain into everyday life. Logistics systems based on smart contracts. Ford patent for cryptocurrency paid traffic regulation. TON with a distributed database and a huge selection of services for tokens. The list of projects with practical application of the blockchain is expanding monthly. And everything that is convenient and practical, always becomes profitable.
These are the main, but by no means all signs that the market will come to life after the recession. Many experts agree that cryptoeconomics is undergoing a transformation phase. It is changing qualitatively, becoming more regulated and, obviously, much more interesting for investment activities.