I think the core of the problem is that it's very hard to value blockchains. How much are they really worth? The price is based on our expectations about the future. Which makes it highly speculative.
The same thing happened with technology stocks in the dotcom bubble. They went through different cycles of euphoria and fear. But the reason of the volatility is because investors can't make much sense from it. Because an efficient market wouldn't behave that way.
Take for example a company like coca cola. The price of the stock is based on how much revenue it generates, which is quite steady. But companies that don't make any revenue yet are much harder to value. And blockchains are even worse because it's still so new and technology keeps evolving fast.
Thats why i think that ta works better than fa for trading cryptocurrencies. The crypto market is very sentimental, the fundamentals only matter long term.
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Hmm.. Interesting. What are the fundamentals reason crypto market is in such despair..
I would say they are not in despair at the moment. We are still in the VERY early phases of mass adoption of Crypto, while their are more use cases each day, we still dont have that "Killer App" like instagram for Crypto... I think despair means their is no hope, the future is grim, but I see the future bright. So many use cases are growing each day, and more people and gateways open up. I feel we will see a big surge towards the end of this year in the Crypto ecosystem.
So perhaps a better question, what are the fundamental reasons crypto is in such holding patter before launching. :D
Thank you for the post!
The big drop in BTC price won't be overcome easily. Its likely allot lost allot of money making them tentative to rejoin.
Put that together that everyone and their dog has a crypto coin out for every reason imaginable then funds get spread too thin. Once a cull of coins takes place and enough time passes hopefully another steady rise in price will take place.
@niel96, No matter we are talking about which aspect. If particular thing is in it's Infant Stage then definitely it will not receive much adoption or will not be considered as game changer aspect. But over the period of time everything changes.
Respondiendo tu pregunta. Creo que mucha gente está asustada por la naturaleza de la blockchains. El hecho de que sea una red de sitios que funciona descentralizadamente confunde a la mayoría de personas que no conocen mucho del tema, no están dispuestos a apostar por algo que no entienden, la desconfianza siempre es mala para los proyectos en crecimiento. Ese a mi parecer es el principal problema. Potencial para crecer hay de sobra, cada día la comunidad es más grande, casa día se le suman nuevas personas. Yo soy un ejemplo de ello. Solución para ésto? Creo que cada uno debería hablarle del tema a sus conocidos y explicarles como funciona, mientras más información tenga más crecerá el entusiasmo por ser parte de la comunidad.
Nice explained. Yes, well it seems true aswell that with the bigger vilotality of these cryptomarket, there is more money to make in shorter time periods aswell.
Most of the asset in that space at the moment is base on hype, FUD, extreme volatility, and extreme speculation. When those companies will mature and generate constant revenue, the fundamental will matter with TA.
Interesting thought wich I will share. If it comes to cryptocurrencies I believe we just started, the banks and governments will try to fight it but it will work out fine for sure. Especially if we are buying, selling (with) it.
The crypto market is such despair, I thought fundamentals reason is government does not support and suppress.
Secondly, too many scams and hackers lead people to distrust it...
I think the Countrys don't want a strong and big Cryptomarket. The great with laws Band the Investores Arena scared.