Bitcoin and the wider crypto market has tanked overnight. It was a sea of red across the board this morning for almost every coin. With the majority of the top 50 coins down by over 10%.
During the recent crypto-frenzy, ethereum reached a peak of US$1,420 per token. The current price represents a 14.8% retrace from the high, compared to bitcoin’s 42.1% retrace. Traders are beginning to look at ethereum as the next leader in the cryptocurrency world.
Whether the future will look like this or be entirely different is impossible to know. But imagine. In the crypto future, you would be free to use any currency you like. And a receiver would be free to instantly and freely convert it into any currency they like. There would be no monopoly power here. The possibilities are truly endless.
It’s the smaller, more nimble regions that are really leading the way. One of the most progressive regions for crypto is Gibraltar. They’ve been developing an open, transparent ecosystem for crypto projects for years. And the Government of Gibraltar will underpin it all.
As a child you are taught things are right or wrong. Black or white. But in the social sciences this is usually wrong. Scientific precision in such a complex field of moving parts it’s impossible to achieve. And it is in this field where you, as an investor, live. Which brings me to Nassim Taleb’s view on bitcoin and cryptocurrencies.
The price of bitcoin has plummeted over the past week. Dropping to US$9,453 per token, an all-time low for the cryptocurrency since November 2017. What has caused the drop?
Most asset classes have an element of risk. Crypto is one market that — at least for now — seems to carry more risk than any other. And that’s because there is no regulation. So what are some of the things to look out for that scream ‘scam’? I’m going to show you a couple, to help you look out and keep yourself safe.
What we are seeing today is a pullback in the price of cryptocurrencies. Largely coming on the back of what the South Korean government may or may not do. South Korea is the third largest country for crypto trading. One estimate suggests Korea accounts for a quarter of all global crypto transactions. Let’s put the importance of the Korean market in perspective.
If you understand the fractional banking system you'll also know that all the ‘cash’ in the world isn’t actually backed by real cash either. There’s so much more to it than just bitcoin and prices in fiat money. If you only take a superficial view, it’s easy to get misled into thinking it’s some kind of fake, ‘valueless’ mirage.
Cryptocurrency prices dropped by as much as 40% overnight. With plunges across the board hitting all the major tokens. With staunch crypto critics crying that the bubble is finally popping. But is it really?