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Investing in Bitcoin is like Investing in Microsoft and Amazon in 2000

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The situation regarding the Bitcoin market right now looks a lot like the one surrounding big tech companies like Amazon and Microsoft 20 years ago.

Crypto market struggling again

The unstable nature of cryptocurrencies has been confirmed once more in the last few weeks. Only three weeks ago, many believed that another serious bull run is afoot after Bitcoin (BTC) hit $8,400 in a matter of days. This increase was warmly welcomed by crypto investors and enthusiasts from around the world, believing that the bearish trend that has dominated the year up to that point was finally over.

However, the bull run was short, and now, in mid-August, Bitcoin is once again struggling, seriously threatening to go under $6,000. Many believe that another drop might permanently damage BTC, making its struggle for dominance finally over. If that were to happen, the coin would never be able to reach its true potential.

And, while the situation with Bitcoin is bad, it is nowhere near as bad to the situation of the altcoins. While almost all cryptos are in the green at the time of writing, Ethereum (ETH) has seen a significant drop yesterday, as well as the day before. Ripple (XRP) has gone down by 93% from its record height.

While many have been trying to find a reason behind this behavior, some, like CoinShares’ Chief Strategy Officer, Meltem Demirors, believe that the issue lies in the lack of investors. This is especially true when it comes to institutional investors, since the market behavior either discourage them from bringing money to the crypto world, or they completely lose interest in it.

Demirors believes that this is due to the fact that cryptos are still mostly valued by their price. While the price does play a significant role, things like currencies’ goals and technology should also be taken into consideration. A lot of cryptos have a huge potential to revolutionize numerous industries. However, they can never properly shine since everyone are only looking at their prices. Prices that are almost always influenced by Bitcoin’s behavior.

The new coins are hit by the bearish trend especially hard. Blockchain startups that are hoping to launch their own coin through ICOs have a choice to either sell their assets now and keep whatever funds they manage to gather or to stay their course and hope for the best. Obviously, this is not much of a choice, and definitely not the way that future successful businesses should be acting.

While a lot of ICOs are trying to raise capital through BTC or ETH, they can’t do much with the prices constantly dropping. And, while there are somewhat stable altcoins out there, and they can preserve their value in the long run, there is also a big decision regarding which one can and should be trusted.

The history repeating itself

According to Demirors, this is a very similar situation to that in the early 2000s, when revolutionary technology companies like Intel, Microsoft, and Amazon appeared. While these have become megacorporations in the last 20 years, back then, they also struggled to gain trust and necessary funding.

Additionally, all those that did decide to support them had to wait for nearly a decade or more to see returns on their investments. The wait paid off, and they are all rich now, but at the beginning of these companies, the risks were huge.

Demirors also stated that new technologies, and especially ones that threaten to change everything that we have known so far, often take a very long time to be understood and accepted. Obviously, with the introduction of cryptocurrencies, this change is even bigger, since we have been using the physical money for thousands of years. Now, all of a sudden, the digital money is trying to take over. And while it definitely presents numerous advantages, accepting such a large change is not an easy thing to do, especially for older generations that are currently still calling the shots.

To trade cryptocurrencies, sign up with BitMexor Binance!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin about to drop to 4k, how will the market recover?

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It’s no secret that the cryptocurrency market (including Bitcoin) has been under a bearish run since last December 17th and it’s been going down steadily over the previous eleven months. But nobody was ready for the way in which the bears hit the market this November 14th.

It was just insane. The market capitalization for crypto went to its lowest point in a very short time. Bitcoin, which is crypto’s canary in a coal mine (so to speak) dropped below the 5k mark. It’s trading at $4,443 as we write this article and is expected to hit the 4k mark if things keep going in the same direction.

Can the trend change? Is there any good news to report? Any reason to be hopeful? The answers are: yes, yes, and yes.

The trend can and will change. We know this because drops as dramatic as the current one have already happened four times over the last ten years. Every time the market has bounced back to reach previously unexpected (allegedly impossible) heights.

About good news to report. There’s plenty. Blockchain projects like Ripple, Cardano, Stellar Lumens, Tron, and some others have reached impressive milestones this year. They are gaining adoption, becoming useful in the real world and securing strategic partnerships.

Also, even in the bearish climate, the crypto infrastructure has kept snowballing so you’ll be hard pressed to find any place in the world in which you…

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Altcoins

What’s Wrong with Crypto?

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Sponsored by Global Coin Report and ICOsuccess

Hey! Are you fed up with the crypto market?

Hungry to see the charts bursting with green again?

The purpose of this very short survey is to get your thoughts on what is holding back our industry and collectively brainstorm ideas for turning it around.

We are looking to get a couple thousand responses over the next couple of weeks, and we’ll be sharing the aggregated results with you once we’re done!

Click below to do your share in bringing back a thriving crypto market!

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First crypto ETP gets approval from Switzerland, XRP takes a significant bite

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Bitcoin is currently at the lowest price it’s had in a year and, yet, confidence and interest among the traditional financial industry (which has been very skeptic since it all started) keeps growing at an unprecedented rate. Switzerland, the world’s quintessential banking country, has green-lighted the world’s first exchange-traded product tracking multiple cryptocurrencies.

It will be called Amun Crypto ETP and will go online next week on Zurich’s Six exchange. It’s designed to track five cryptocurrencies and to index their market performance. The five digital assets in question are Bitcoin, XRP, ETH, Bitcoin Cash, and Litecoin.

Having your tokens managed by Amun will set you back by 2.5%. It’s expected for Bitcoin to be responsible for about half of the trade, with XRP doing a quarter of business and the three remaining coins at smaller percentages.

The Swiss exchange parent company is Amun, a fintech company based in London and founded by Hany Rashwan. Mr. Rashwan assured to the press that the ETP is built to meet all the same standards valid in conventional exchange trade used by investors all over the world. Mr. Rashwan added,

“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”

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