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What The Bear Market Really Means In The Cryptocurrency World

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@marvinix
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Many people think the bear market in cryptocurrency is a negative connotation. However, it’s more of a neutral term that implies a lack of growth in the industry. A bear market doesn’t necessarily mean prices will continue to drop, but it does suggest that something needs to be adjusted. Bear markets are common in virtually every industry, and they always follow initial growth. Made using canva

A bear market means prices will drop significantly from their peak. For example, Bitcoin peaked at over $20,000 towards the end of 2017. After several months of downward pressure, however, it bottomed out at $3,500 in February 2018. Bear markets tend to last for several months before prices rebound— sometimes years later. When analyzing a bear market, it’s important to note how long it will last and how much you can make if you stay invested during the downturn.

Another thing to consider when analyzing a bear market is whether the underlying technology is working as intended or if there are bugs preventing its use. For example, Bitcoin was initially used as a store of value rather than as an everyday payment system. Its slow transaction speeds and high fees made this impractical— leading to the creation of competing cryptocurrencies like Ethereum that offered faster transaction speeds at lower costs. In the years since then, many new blockchain projects have emerged that aim to fix these issues and make Blockchain-based projects practical for businesses to use. If these new projects work as intended and fix mainstream problems with current payment systems, we could see another price spike as new users adopt this technology en masse.

Bear markets can also suggest that an ecosystem you’re investing in needs to be reworked so that users can make more convenient purchases with lower fees or no fees at all. This is because users won’t keep spending unless there’s something of value they can acquire again once their investment matures. Some investors have even suggested creating an alternate currency system based on Bitcoin where low fees are possible but no longer based on network security— leading to an alternative ecosystem where different cryptocurrencies could rise and fall depending on user demand for low fees instead of user demand for security against inflation or fraud against major banks..

Bear markets aren’t necessarily bad; they just suggest something needs adjusting in order for an industry to grow and become more practical for investors to use themselves. The main thing you can take away from a bear market is what adjustments need to be made so future growth can occur in the first place. After all, growth begets opportunities for more growth!

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