Cryptocurrencies
Unstable Nature of Cryptocurrencies
Observations of a cryptocurrency hodler
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Its been more than three years since I have started investing in blockchain projects and cryptocurrencies. During this period, I was only investing rather than buying and selling currencies.
After investing in more than dozens of different cryptocurrencies, I have come to the conclusion that the cryptocurrency scene is quite immature and unstable.
Even though I have expected them to become stable as time passes by, interestingly it becomes more and more unstable.
The Hidden Connection
All the cryptocurrencies have an indirect connection with Bitcoin.
Even if you have invested in a perfect alternate-cryptocurrency(altcoin), if the bitcoin goes down, in the long run, the altcoin will definitely go down as well.
The hidden connection between Bitcoin and Altcoins creates an unstable environment.
Yesterday, we have witnessed a rumor about Bitcoin regulations in the US. It resulted in Bitcoin devaluate from $19.200 to $16.900. Further, the loss in the Bitcoin price has led Altcoins to drop 20% on average.
As we can see from the example, cryptocurrencies are quite unstable. Unless Bitcoin goes out of the cryptocurrency list, it will have an effect on all the altcoins. And, we will never see a stable cryptocurrency market.
I think people forgot what cryptocurrency is here for. Most investors are just chasing to earn money and nothing else.
In my opinion, cryptocurrencies are here to free us from the problems we face because of the fiat currencies like the Dollar, Turkish Lira. Cryptocurrencies aim to create a currency with a stable value. No rumor or tweet of a president should not change the value of cryptocurrencies.
But, as we see from the crypto market, we can say that it has a long way before achieving this.
