Cryptocurrencies were in the limelight yesterday as Bitcoin (BTC) and other alt-coins like Ethereum (ETH) fell dramatically to its lowest the last couple of days.
Reason? Companies who have raised funds through cryptocurrencies (ie. ICOs) were possibly doing a mass disposal of their cryptos in the market – converting their crypto holdings to conventional monies (USD).
What does this mean for cryptocurrencies and the future of crypto?
In my last couple of posts, I shared my thoughts on the economic viability of Blockchain backed technologies and cryptocurrencies, and its feasibility as an investment.
Right now, it seems to me like the BBs of such technologies are dumping their alternative “currencies” in favor of conventional money. This action tells me that even the BBs don’t believe cryptocurrencies can exist as a form of “currency” in and of itself.
With such sentiments, it is no wonder cryptocurrencies fell to lowest (or nearing their lowest) point since being on the market.
Does this mean crypto has a possibility of ceasing to exist in the future? I don’t believe so. In my previous article on Digital Currencies and Capitalism, I posit that there will be a mass wipe-out of weak cryptocurrencies and Blockchain companies, and only the creme-de-la-creme will survive.
At this present moment, it seems like cryptocurrencies are experiencing the beginnings of such a decimation. No one knows what will eventually happen and I may be wrong.
Once again, I urge investors to be prudent and stay clear of cryptocurrencies until everything stabilizes.