Back in 2017 we saw what was widely considered to be the first bull run in the history of cryptocurrency. Bitcoin and Ethereum very much lead the charge with regards to this, and a lot of smart investors like financial expert Robert Testagrossa certainly saw the fruits of it. Unfortunately however there were many late to the game who saw coins such as Bitcoin plummet from $20,000 down to around $3,000. The bear run that followed in 2017 was pretty savage and many lost a great deal of money from their investments.
Currently cryptocurrency is very much inside a bull run, but even if there is a bear run to follow, it will not be anywhere near as savage as what happened back in 2017, and here is why.
The main criticism of those coins which had big market cap back in 2017 was that the whales controlled the price. Whales are investors or groups of investors who have huge holdings of crypto, who can alter the price with a quick sale or dump, or indeed big buys which lead to a pump. Regarding those coins with big market caps now, the whales have very much been diluted and that means that they can affect the price less.
Acceptance in the Community
The bear run back in 2017 served as a reminder to many of the volatility of crypt, and those traditional thinkers were almost proved right about their opinions on crypto. During this bull run however we are seeing some of the world’s biggest companies get on board. Tesla has bought up huge figures of crypto, MasterCard and PayPal now allow for crypto purchases and even the likes of Bear Sterns are getting involved. The oldest bank in New York, BNY Mellon, is even allowing its clients to hold crypto with them. This shows the acceptance of crypto and why the crash won’t get close to what we saw in 2017.
One of the biggest criticisms of cryptocurrency through the years was that it had no real value because you couldn’t buy anything with it. This of course was a valid concern which many had. These days however this just isn’t the same and there is much that you can purchase with the likes of Bitcoin. In Miami there is a trial where you can pay taxes and earn salary in Bitcoin, Tesla allow you to buy a vehicle with the cryptocurrency and there are even towns in Japan which are operating using the currency. Tis will continue to grow and making the coin a palpable asset is exactly why we won’t see a monster plunge in price.
What many people didn’t know about that tough bull run in 2017 was that it was mainly caused because of a massive hack which saw huge volumes of crypto stolen from wallets. These days however there is much tighter security which can prevent this from happening. This isn’t to say that a hack is impossible, but it is far less likely than ever before.
The market is volatile of course, but when the bull run comes, it is worth ensuring that you don’t panic.
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