As an adopter, user and investor in cryptocurrency, the current extended bear market of 2018 has been worrisome and has tested my resolve. The bull market of 2017, news coverage and social media-supported wave created hype and hope for 2018 that never materialized. We must understand what happened to cause this and where the broad market is headed. The total cryptocurrency market capitalization at the top of the bubble was nearing $1 trillion, and today it is less than $200 billion. Still, I have hope for the future. Let me tell you why.
First, let’s get all the bad news out in the open:
· The total market cap of the cryptocurrency market fell from $840 billion to $184 billion in 12-months.
· Bitcoin and the associated cryptocurrency market has been effectively banned in India, a nation of over 1-billion people and its largest exchange, Zebpay has been closed.
· Bitcoin has been largely chastised and criticized as harmful in the European Union.
· The cryptocurrency ETF has not been approved by the SEC.
· Large companies including Amazon have been working to track Bitcoin use through sophisticated technology that tracks the data packets as they move.
· New IRS rulings and the massive volatility makes Bitcoin less lustrous as an investment.
· Warren Buffett, the greatest investor of all time has criticized Bitcoin harshly.
Did I ruin your day? This looks really bad.
What is the good news that we can use to hold our coins and buy more during the downturn?
How about demographics favoring Bitcoin? Bitcoin’s use case during crisis? Bitcoin’s status as areal store of value similar to gold? Bitcoin’s potential VanEck Vectors ETF that will draw billions of dollars into Bitcoin from Wallstreet? Bitcoin’s continued adoption in ATMs and synthetic financial products?
The biggest reason to hold on and keep averaging down on our coins can be summed up in Binance’s CEO’s words. A Bullish cryptocurrency run will happen in the future. There will be some catalyst that sparks it off. If we look at the history of Bitcoin, we see a 3-year sideways market between 2014-2017. When markets are low and being ignored, it’s the time to buy. The market lost ¾ of it’s market cap last year. Easy come, easy go. We are at a low point in cryptocurrency’s history and we will see blue skies again.