After having enjoyed almost two years of value increases, the cryptocurrency market is experiencing heavy losses across the board. The values of crypto assets are plummeting, cryptocurrency investors are stuck with really expensive – yet downgraded crypto coins, which they cannot sell and the real economy is once again seeing cryptocurrencies as something that causes toxicity in the financial world. The longer this situation develops, the more investors are wondering if there is something that can put an end to this historic “crypto winter”.
Investing in cryptos is a little bit like playing games of chance. You can play your favourite games at an online casino and potentially win real money, but at the same time, there can be a day during which Lady Luck will not be on your side. After all, the odds are not always in one’s favour and in the case of cryptocurrencies, there is no “Return to Player” setting that can restrict the amount of money one can lose. Bitcoin investors saw BTC’s value reaching the 70,000 USD mark a few months ago, but now they are seeing the asset underperforming while being under the 20K mark.
With Bitcoin trading lower and lower over the last six months and with the coin’s value dropping at its lowest during the first days of September, crypto traders are trying to understand where the situation is going. Many are hoping that this downward momentum is going to end towards the end of the year and that BTC will start recovering at a very high pace, but there are also those who believe that all the new restricting policies taken by the Central Banks of the world’s biggest economic powers, will push “high-risk” assets even lower.
Can New Technologies Be the Way Out for Struggling Cryptocurrencies?
It is no secret that crypto assets are built on relatively modern technological foundations. This means that their advanced technology allows for further developments, which can be replicated and implemented in multiple industries. The more these assets are switching to more efficient and sustainable technologies, the more things are going to improve in terms of their value. However, if those who develop this technology continue to avoid being “extraverted”, the situation will continue to remain as unstable as it is today.
The global economy is not very big on trusting new assets and when the most powerful people in the crypto world are communicating with closed cameras, through avatars or through private networks, things can only get harder. The “crypto” part in the name of these assets does, of course, make a point about the nature of the product, but at the end of the day, earning trust comes by allowing the world to get to know you.
If the world’s economic leaders work together with those who have built the foundations of the crypto coin technologies, then the changes that will come to the global economy will be ground-breaking. All it will take is a little bit more extraversion from the crypto-front and a little bit less conservatism from the front of the real economy.