Has the cryptocurrency crisis begun?

Today we wake up another 10% more devalued in the cryptocurrency market, the big bitcoin is approaching $20k after reaching $60k three months ago when we were intoxicated with green numbers and watching a bull that seemed to run amok. Panic grips inexperienced investors as crypto-world detractors take the opportunity to vent their criticism of digital currencies, a move they make to somehow continue to give oxygen to the dying fiat world.

It is true, in recent months the cryptocurrency market went from $3billion to $1billion in capitalization, while projects that in other times seemed to generate great benefits vanished amid mismanagement, corruption and overvalued expectations of development and publicity (Terra-LUNA, Shiva Inu, Dogecoin and the vast majority of the so-called metaverses), a situation that exposes for certain the dangerous extreme of volatility in the cryptosphere.

In recent years, many of us have dedicated ourselves to sifting through the thousands of projects calling themselves "cryptocurrencies", in the hope of discovering the "new bitcoin", that is, a currency with a value close to zero and that in 5 or 6 years will be revalued in hundreds or thousands of dollars, however the reality indicates that so far only one digital currency has this behavior (we all know who it is, the work of Satoshi).

We are possibly going through one of the most difficult periods in the history of cryptocurrencies, despite the above I do not feel the need to turn on the alarms, call the firemen or throw myself desperately from the top of a skyscraper but the most important thing here is to learn from this lesson. Let's see,one of the first things I learned is to see Bitcoin as the tortoise competing in a long-distance race, while altcoins (all other cryptocurrencies including Ethereum) are that hare running without a brake and attracting by their speed.

While BTC generates more and more trust for its particular lack of centralism in its structure the rest of the altcoins are mostly centralized products, designed to attract more or less informed users or investors to place their money in an unknown or underdeveloped (or overvalued) ecosystem. Some of these projects or platforms will survive the passage of time but it is highly likely that the vast majority of altcoins will perish in the attempt to consolidate their respective developments.

It would be a positive thing for the crypto world to get rid of so much "ballast" that slows down the growth and mass adoption of cryptocurrencies, a crisis in this world of digital currencies is necessary because it would purge thousands of deceitful projects (e.g. Dogecoin) from the process. At the beginning of the 21st century the dotcom crisis completely changed the world of the Internet, disappearing millions of ghost websites and strengthening those truly innovative projects that are still in force today.

Today nobody remembers Netscape and its contribution to Internet navigation, but the all powerful Google dominates everything on the information superhighway. Undoubtedly the desperate situation in the Fiat world makes me think that the mother of all crises (as I titled in a previous post) is about to begin and applying Darwin's theory "only the fittest will survive", for me the Bitcoin will undoubtedly be the big winner of this traumatic process at economic, financial and social level that we suffer.

The fall in the price of bitcoin and cryptocurrencies makes me think that this is an opportunity to move money from the Fiat system to the cryptomoney world, it seems that the dollar, euro, yen and other fiat currencies can no longer hide their inability to move the gears of the world economy, much less to generate wealth and welfare, so sheltering wealth in trusted assets is essential to overcome the bursting of the bubble that does not stop growing. Only BTC and gold are the assets that generate the most confidence in the world, that is where the reconfiguration of the international economic and financial mechanisms will be directed, meanwhile the traditional currencies as we know them will be a memory of the past.

Posted Using LeoFinance ^Beta