It’s been a rough few weeks in the markets. Over the course of less than a month, the combined value of all cryptocurrencies has fallen from $115 billion to $60 billion and dropping. Plenty of once optimistic investors are now in a world of gloom and doom as their favorite projects see significant losses. However, all this bloodshed has not been without its hidden benefits. Yes, one clear victor has emerged from this struggle, made stronger than ever by the trials and tribulations. But first, let’s take a quick look at how we got here.
Bitcoin’s drama shook money into some eyebrow-raising directions
Just a few months ago, Bitcoin was at 85% of the cryptocurrency market. Now, even after catastrophic plunges by its competitors, it remains below 50%, up from a total share of about 37%. Make no mistake, Bitcoin has clearly felt the sting of its own internal issues. A fairly broad scaling consensus has been reached, to be sure, but elements of the Core team still threaten a split, not to mention Craig Wright coming out of the blue promising a hard fork of his own, with possible support from Roger Ver. This has led to an investment shift to other coins without examining the root causes of the uncertainty. Litecoin received a large rush of investment, and whether or not it lives up to this in the long run, this shift was likely based on a simplistic attitude: “Smart people say Segwit will fix Bitcoin, so Litecoin (which didn’t need fixing) now has it, that means it must be good.” The crash is good for Litecoin, since it shakes off irrational investment and leave behind those who actually respect the project and will work hard for its future.
Ethereum wild ride on “investment for its own sake”
Believe it or not, Ethereum wasn’t created as a perpetual pump machine. It was made as a smart contract platform to enable all manner of crazy, futuristic improvements to the way we do conduct our lives. Its initial hype bubble was la...