Home CryptocurrencyBitcoin The Massive Speculation Stage in the Cryptocurrency Industry

The Massive Speculation Stage in the Cryptocurrency Industry

by Alan Daniel

As we near the end of 2019 with turbulent crypto markets abounding, there is a lot of speculation in the cryptocurrency industry. The rollercoaster ride of volatility after the hesitant emergence from a long crypto winter is good indication that cryptocurrency is here to stay.

The Massive Run Up and The Gradual Decline

The cryptocurrency industry realized a significant spike in prices and activity in 2017.

Indeed, speculation was in the air in full force and then a massive correction took place in the cryptocurrency market in 2018.

Cryptocurrency investors would experience a a great depression that year and digital assets wouldn’t be as popular anymore. Bears in cryptocurrency would laugh with great glee and joy.

They reveled in the gargantuan price deflation of bitcoin. Bears in 2017 and 2018, implemented and capitalized on the bitcoin falling knife strategy.

Speculators and bitcoin top buyers repented for their jubilance, enthusiasm, signs of excess in leverage, and talks of Lamborghinis in 2017.

Indeed, 2018 was a sorrowful time for those in the industry merely for the money gains.

Conversely, true builders kept their nose to the grindstone. These entrepreneurs built around Bitcoin, Ethereum and platforms such as EOS. They saw gradual growth.

Firms such as Binance, Coinbase, Xapo, Lolli, Argent, Trydonut, and Square, among others.

The year 2019 brought about more sparks of life in the price potential of bitcoin and in some other digital assets such as BNB, LTC, and others. Those who believed and became the buyers of last resort in bitcoin in late 2018 when bitcoin was at its lowest, saw substantial gains in 2019.

Where to next?

Look to the past.

A few industries such as railroads, light, gas, petroleum and the automobile industry experienced several run ups and corrections in the early stages before the market rested on appropriate prices.

There are lessons to be learned from the past, like the bank run that signaled the beginning of the decade-long Great Depression of 1929; signs of a faltering economy like we’re seeing in China today. To prevent the past from repeating itself, China is looking to cryptocurrency and stablecoin, even as they put major restrictions on Bitcoin and cryptocurrency exchanges. These actions can encourage a speculative market and the future is anyone’s guess.

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