Bitcoin has lost three quarters of its record value. Some other cryptocurrencies have done even worse, giving millions of crypto-skeptics the opportunity to happily post “I told you so!” posts on their social media.
Their satisfaction stems from the frustration of missing out on the crypto gold rush in which early adopters made tons of money. For example, last year, the 10,000 Bitcoins that paid for two pizzas in 2010 reached a value of 680 million dollars and Binance Crypto Exchange Founder’s Net Worth Surpassed $96 Billion. However, neither the “invest in crypto!”, nor the “never invest in crypto!” mantras are wise; smart investors know that the best approach is to “invest in crypto when the time is right”. And the right time is now, while the crisis still lasts.
Extreme volatility has always been the unavoidable feature of Bitcoin and non-asset backed cryptocurrencies, so the current collapse in their value is nothing new. In 2018, Bitcoin hit the price of $19,783/coin, then dipped below $3,300/coin, an even steeper decline than what has occurred over the past six months. Those who bought Bitcoins at the top and then sold them at the bottom have lost a lot. Those who bought Bitcoin at around $3,300 profited from the wild ride to over $64,800, a return of around 2,000%.
Now that Bitcoin’s price is still a small fraction of its past highs, “it has nowhere to go but up!” I’m sure it will recoup its recent losses and surpass the $100,000 price per coin, but there are a few important clarifications I need to add to my prediction.
First most importantly, I have no financial reason to promote bitcoin. In fact, earlier this year I presented our unicoin as a superior cryptocurrency: backed by stocks and paying dividends.
Second, before finally going up, Bitcoin can still go down. Bitcoin has stabilized at just over $20,000 per coin now, but no one can be certain what Bitcoin’s new bottom would be before its next rally.
ThirdBitcoin’s recovery is expected to take about three years – investors don’t easily forgive 75% declines in value.
Fourth, the “nowhere to go but up” logic cannot be applied to many other assetless cryptocurrencies that will deplete. “Doggy coins” like Dogecoin (92% down from record high) or Shiba Inu (86% down), created as jokes, are likely to be replaced by dividend-paying cryptocurrencies backed by valuable assets.
Bitcoin’s growth is expected as it is the only known name in the cryptocurrency market that is expected to grow over 3,000%, from a current valuation of just under $1,000,000, to $30,000. , or one-third of the $90,000,000 combined valuation of fiat currencies. Cryptography is a superior technology for digital currency, which is the predominant form of money today. Humans have gone from using shells, gold and banknotes to scanning their phones in stores or transferring money with a few keystrokes. Yet, while the rapid growth of the cryptocurrency market seems virtually guaranteed, the leaders of this market will change in the same way that Facebook replaced MySpace or Google replaced Lycos and AltaVista.
To finish, despite my expectations for bitcoin’s recovery, I don’t think it’s the best crypto investment opportunity. Created by an anonymous person to provide financial transaction anonymity to those who had something to hide, Bitcoin is set to lose market share to cryptocurrencies that offer smarter business models, including anti-hacking features. volatility and dividend allocations.
Just as the Dot-Com implosion of 2000 did not halt the dizzying rate of growth of the Internet, the current adjustment of the crypto market will only serve to replace inefficient and outdated concepts with the new generation of crypto. -currencies.
Alex Konanykhin is the CEO of Unicoin, the first equity-backed, dividend-paying cryptocurrency. He is also executive producer of Unicorn Hunters, “the most iconic commercial series of recent times”, according to Forbes magazine.