What is the hope of cryptocurrency

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Image made using canva

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Introduction

Good day everyone and welcome to another day on my blog, for many of you who regularly visit my blog I would like to say a big thank you for all you have been doing for me, as without readers such as your selfes I won't be making any content on steemit.

Today due to the prevelant market conditions I would be discussing on the cypto market and the hopes for the future.

What is the hope of cryptocurrency

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Without a doubt cryptocurrencies has changed the fabric of our modern day life it's almost impossible to come accross any individual who hasn't had an experience or two using cryptocurrencies, this the nature of cryptocurrency in our environment today.

Since the invention of the first cryptocurrencies in 2009 close to 15 years ago we can see that they have been an increasing number of cryptocurrencies, today they exist close to 10,000 cryptocurrencies which are unique but the same as they all follow the principle of decentralisation and hope to solve the Problems faced by a centralised monetary institution.

Over the couple of years we have seen the value of the crypto market increase exponentially from barely $1000 at at 2009 to $3.6 trillion in late 2021, this increase in market capitalisation can be attributed to the fact that cryptocurrencies have now become a global phenomenon in the sense that individuals from around the world are investing resources into the Market.

But what we must understand is that the market capitalisation of cryptocurrency didn't just jump from $1000 to $3.6 trillion over night it went through the process of pulses that is upward and downward movement over a period of 15 years.

Now between this 15 years they have been various periods in which the market capitalisation of cryptocurrency has gone below the previous high.

To under the movement of market I woukd like you to read this post from this post you would understand that what makes the price of the market cap to go up is when people invest money into the market hence the value goes up, now those who had been in the market for a longer period would always like to take profit when they feel prices have gone up, it is due to the fact of this individuals taking profit that causes the prices to dip onces it gets very high.

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Examples of cryptocurrency dips in history

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In 2011 we saw the price of Bitcoin get as high as $32 which at then was the all time low and immediately it got up high what followed next was a sharp decline which left Bitcoin worth little over a penny.

In 2018 Bitcoin reach another all time high of $20,000 but what followed next was a sharp decline below $12,000 Bitcoin would range below the $12k region for most part of 2018.

in 2021 Bitcoin reached another all time high of $64,000 but what followed next has been a steady decline till today which has seen Bitcoin lose 68% of its gains presently Bitcoin is ranging at $19,000

From this information one thing is common the market moves in pulses in what ever direction it wishes to go,
Presently we see that the crypto market from $3.6 trillion is low worth $800 billion which is almost 64% decline from the all time high.

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Understanding the way market moves

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Understanding the way the market moves is pretty basic in my opinion for every higher high they must be a corresponding downward move this is so because individuals who have entered this market early on would always wish to take profit at some point this causes the price to fall.

When prices fall those who wish to invest in the market become skeptical on doing such hence the momentum for an upward movement then shifts to a downward movement as fears sets in to the market, individuals tend to think that the end is near for cryptocurrencies and they start to sell assets in loss for fear that it may reach $0.

But what I have noticed so far is that for any time the market has fallen to this extent many have sold assets in loss for fear/panic and eventually the market turns around and makes a higher movement as many who didn't get in at the first wave would always be looking to get in at a cheaper price.

When should we jumo ship

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It is very difficult to give a definite answer as to when it is okay to jump ship out of the crypto market this is because the crypto market is a market fuelled by greed and fear hence it doesn't necessarily pay attention to technical and fundamentally analysis of the market but what it does pay attention to is the prevailing market psycholgy of the masses who are in tune to invest in such a Market.

To be a very good trader you must be able to anaylse the general mood of traders both institutional and retail traders, by doing so it would give you an edge as to what would be your next move in the market.

Time and time again we have seen how good news makes the market to dump and bad news make the market to rise this is due to the prevailing conditions of the Market psychology.

Will this dip end anytime soon

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Looking at the greed to fear index you would see that the market is still heavy on the fearful side meaning that individuals are selling and shorting the Market rather than buying and longing the market.

The dip is unlikely to end anytime soon as the one of the main reason which is inflation caused by the Russian war is still in play it is only when the war has ended can we see the scale tip from fearful to greedy.

My forecast of cryptocurrency

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This is not the end of cryptocurrency I can almost guarantee you 100% by next year crypto would have reached another all time high.

The market cap would go as high as $5trillion and Bitcoin should reach $100K.

Why you might asked for anytime the market goes down they are millions do buyer who are willing ready to push more money into this market as we are all looking for gains.

As soon as the war is over and inflation reduce we would start to see astronomical price rises in cryptocurrency.

My advice to investors right now

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I won't lie it's going to be very hard looking at your portfolio right now which each day the dip dipping Lowe and each day comes more regret of not selling soon.

The fear or selling your portfolio for a fraction of what it was at the all time high when you didn't sell.

The hard reality is that portfolio you are thinking is a fraction would be slashed down again in the coming months because right now the market is in full blown panic.

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They are three things to do :

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1. play diamond hands and wait the storm out for in the long run you would benefit from this gamble.
   

   OR

2. sell your asset and enjoy what little you have left, problem doesn't used to finish.
   

   OR

3. Risk it all : sell your assets and wait for the price to get way lower and buy at this point back thereby increasing your chances to make an even greater return by the next bull market.

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Conclusion

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One thing is for sure as far as crypto currency has a meaningful use they would always be a value attached to cryptocurrencies hence the only way crypto currency can fade out is if centralised bank were able to make a decentralized token which they would give to the public.

But it is not possible due to the fact that such a decentralised token would be a cryptocurrencies which we now have today.

_{The storm would be difficult but the will be light at the end of this turnel}