Why Are Cryptocurrency Markets Down Entering 2018?
Many people are asking if the cryptocurrency fad is already ending. Saying things like, has the bubble finally burst? It's interesting that many people have been watching and hoping that the industry fail for almost a decade now. I am not sure if it's the desire to be oppositional, an expression of fear, or refusal to accept change, but many people are still waiting for the day to say "I told you about that cryptocurrency scheme."
We have seen the many pros of cryptocurrency and its numerous technologies. They have shown the ability to solve problems no one has had an answer for so far, such as faster, less expensive currency transfer, identity protection, and anonymous transactions, to name a few. It is understandable for big business and financial giants to be somewhat fearful of change. We have seen technology and advancement affect many industries over the last century. However, it is hard to understand the lash back and resistance by the average person with little to lose.
Fear, insecurity, and jealously comes to mind for a person who attacks something just because they don't understand it. It could also be that they do not have the courage to pursue investing in it, and don't want to see others succeed. That could be painful to watch knowing you could have done the same, but chose otherwise. And for the person not interested, why go out of your way to comment and be negative towards it? Why not just continue on with what you are doing? This is the environment of today's developing cryptocurrency world. You have the nay-sayers, you have the curious, and you have the die-hards.
This type of mixture creates a conflicting result, especially in a market drive by human activity and created value. When people see the hype and the crowd going towards cryptocurrencies, almost everyone wants to jump aboard. Once the popular consensus turns negative, so goes the responses. People follow the crowd and buy when it's hot, and sell when it's not. This creates a yo-yo activity. Fortunately, this up and down slope is taking an upward climb, due to the growing amount of interest and involvement. This is the nature of investing in today's social media driven society. Most people learn from and take advice from what they hear on social media platforms, right or wrong.
Using this approach may work in some cases, and be misleading in others, but it is somewhat helpful in certain instances. It's helpful primarily for knowledge of what people are thinking and doing, which can be helpful when dealing with a market like cryptocurrency. It is however not a sound strategy or approach for investing. Like I said before, the drops are not surpassing their original starting points, and have been at a steady monthly climb. Therefore, growth is happening every month, regardless of the highest point or how long it stayed at the high point. At the end of the month, it is higher than where it started the month, and that is positive.
With that being said, it is more than likely that January of 2018 will be no more different than December 2017. It may be down right now, but it will more than likely continue on its growth pattern as expected. The novice and speculator will always see what they want to see, no matter how obviously contradictory it is. The industry is not a bust, it is just truly beginning to be accepted by mainstream society. It is more than a quick financial come up or a weird hobby for tech geeks, like said in the past. No matter the process it takes to arrive, cryptocurrency is bigger than any small group's interest. It is the future of all technology and transactions.
True opportunity is when others don't see opportunity right in front of them already. Most people will follow others and react off of emotions versus making educated decisions. The best time to maximize opportunity is when others are either fearful or waiting for social proof. Remember this statement by Warren Buffett as we go forward in this market.
"Be fearful when others are greedy, and be greedy when others are fearful."