It’s not crashing, it’s forming; but formation takes time. After the recent astronomical rise of crypto-currencies prices, most investors thought that retirement came early and every one of them would be rich shortly. When this didn’t happen, people are wondering what happened. The answer is prices corrected and the development of user friendly technology takes time. The problem is that most people do not understand what crypto-technology is or how the market works.
The introduction of the Ethereum platform in 2015 allowed for the development of companies like Ripple, Cardano, and many others to create, invest, and develop their visionary projects. When these projects became noticed by the public in December 2017, their ideas became immensely popular and people confused popularity with instant cash value. The companies’ coins were purchased at a feverish pace and their value was inflated to unrealistic levels. This inflation was caused by the expectation of immediate launch and adoption of new crypto products into the world. But the real world doesn’t work that way. Instead, Bitcoin prices started a correction and the public panicked. A lot of short-term investors began selling their positions in the fear that the Bitcoin bubble was bursting. Add to that the fear of regulation, sale of large quantities of Bitcoins by the trustee of Mt. Gox, taxes, and negative publicity. All these factors combined create fear and doubt of crypto-currencies’ values and question their future.
What people don’t understand is that the crypto market is not like an established, controlled, and maintained industry. It is speculative, decentralized, and disorganized. And that’s what makes it interesting, fun, and volatile. With no centralized authority, companies are free to conceptualize ideas, assemble experienced teams, raise funding through ICOs, and work on their projects undisturbed. For investors, the growth of these companies and the use of their coins represent better returns than conventional investing. On the other hand, the greed of buying low and selling high within a short period of time creates price volatility. Also, ICOs are not guaranteed, nor instant; they’re equally an opportunity and a risk at the same time. They could succeed or they could fail; it’s the testing to transform an idea into a product. While the public only cares about the daily price of crypto-currencies, companies work in long term schedules.
Technology takes time to develop; behind the scene, the creation of user friendly applications like crypto cards, exchanges, and universal wallets is proceeding at neck breaking pace. Companies like Ethos, Eos, and Iota plan to develop exchanges that can transfer money into crypto-currency that can be easily exchanged for each other or accepted for goods and services globally. Nano, Litepay, Dash, and others want to become the everyday coin to use. Ripple and OmiseGo are working to expedite cross border transactions. NEO transformed from a development platform to a consortium of multiple companies designed to enhance business and technology. The blockchain is being replaced by faster but less decentralized hybrid chains using DAG, Sidechains, Offchains, and anachronously interacting contracts. The blockchain will ultimately be abandoned for far more advanced systems ran on quantum computing and controlled by centralized private sector verification nodes and notary clouds.
It took the stock market over 400 years to get to where it is, and it took the internet over 20 to become efficient for commerce and everyday use. So it will take at least five years for crypto-currencies to truly come into their own. And while today it will seem that their value appear to be crashing, in reality, they are stabilizing and consolidating. Once the major projects being worked on begin to emerge in the later part of 2018 and early 2019, the prices will begin to steadily rise and the investments made today will once again transform into unexpected profits.