It has been a collapse of epic proportions.
After peaking on January 7th, 2018 the crypto market has shed over 80% of it's value.
Briefly it traded over $900 billion in total market cap and now it trades for roughly $135 billion.
It has been a colossal destruction of value.
In fact, at this point, Apple could buy the entire crypto market 2-3 times over with the cash it has sitting on its balance sheet.
Apple has close to $300 billion in cash sitting on its balance sheet.
(Source: https://steemit.com/bitcoin/@spartanza/apple-is-adding-a-bitcoin-wallet-to-imessage)
Is this kind of destruction of value unusual?
The amount of money that has been lost is unusual, but the cycle is not.
Basically every market since the beginning of time has experienced boom and bust cycles.
Anyone saying crypto is a scam due to the large drop doesn't fully understand how markets work.
Amazon for example, a company that most agree is one of the greatest companies in the world, once traded for as low as $6 per share during the dotcom bubble collapse.
Here we are, roughly 18 years later, and Amazon has traded for over $1,000 per share for quite a while. This also includes several stock splits along the way which means its actual value is even higher for those that bought and held from $6.
Does this mean that bitcoin will do something similar?
That remains to be seen, but it does mean that just because there has been a massive correction that doesn't necessarily mean things are finished and it doesn't mean that it was a scam.
Next time someone tries to tell you otherwise, tell them about the Amazon example I mentioned above.
Stay informed my friends.
Follow me: @jrcornel
You might also want to mention that the FANG (Facebook, Amazon, Netflix and Google) stocks have lost $1 Trillion in value this year. That is trillion with a "T". 😎
https://www.cnbc.com/2018/11/20/techs-popular-faang-stocks-have-lost-945-billion-and-counting-from-highs-amid-tech-rout.html
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That is a very good point. Thanks.
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Yesterday , something drew my attention and decided to write this post. i don't know when trend turns up again. but have a few signals in the market.
https://steemit.com/bitcoin/@cryptoewp/bitcoin-what-google-trends-tell-us-and-tv-social-media
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That google trends thing is interesting but not the whole story. Often people search for bitcoin because they don't understand it, which means that once they search for it once they don't need to search for it again. Though there is correlation between checking prices and bitcoin going up...
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Of course!! only google trends can not be a indicator, But sometimes, some indicator can be first signals like a pessimist forecasts Generally, many exchange ( such as stock,future or commodity) asset price trends occur after pshycological effect.
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😩😩😩😩😩
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Pretty brutal eh?
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Surely this will pass but I hope it doesn't take too long.
Amazon took 18 years to get here, Don't imagine it. Lol
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Hopefully just 2-3 years for bitcoin to duplicate those types of returns. :)
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About Apple buying the whole crypto market .... If they put even just a billion.... the price will sky rocket, and that is ... then they wouldn't be a able to buy it :) ....
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Yes that is very true, it was more just to show how small the market is really. :)
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Unfortunately this has wiped many people out. Until Crypto is backed by real utility with is use of the currency these boom & bust will continue to happen. The first market caps can't even scale past 20 tps.
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Yes, though there are many that can, yet there are no where near that top spot.
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Remember when Google was $65 a share and you had to register for it online? This too shall pass...
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Good point.
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Even if apple wants to but the entire crypto they absolutely can't.
Crypto is decentralized and there is no way to force holders to sell their crypto as there are some very long term holders that never care about the price of theeir holdimgs in 2 years or even more from now.
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Yes that is a very good point. Also if they tried to buy just a billion or so worth of crypto, the prices would skyrocket. It was more just an interesting observation about how small the crypto market is now.
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Ur point is clear indeed, I already know u might think about that,, and I would really love to see apple trying to buy a portion of Crypto, I believe if they just say in an official statment that thay are buying today, maybe tomorrow we will see a new all time high. Even if they are not spending a cent hhhhhhhh.
Keep it up
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As the traditional financial markets continue to also experience declines I am believing more that this is more a derisking of assets into liquidity like cash to delever portfolios using debt to increase returns. As that stabilizes, assets that are uncorrelated to economic and debt cycles will be in demand and lead to a new bid for bitcoin and other cryptocurrencies.
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That is likely a very big part of all of this as well. It is no coincidence that bitcoin and crypto is tanking at the same time all other risky assets are being sold off bigly.
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NBD whats 800b between friends
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One giant collapse of wealth.
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Don't worry it's a billion market so it will not make any serious affect :).
We will recover this lost within month, nothing to fear, they are creating more kind of fuds by revealing the possess :)
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I am not quite sure what you are saying here?
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