There is an ongoing 'bloodbath' in the digital currency market space and checking coin market.
I know for a fact that any new, amusing technology that surges with a disruptive element (bubble), has in one way or the other, caution hovering around its neck.
Bubbles, on one hand, are important for the technology to thrive, the speculations of falling apart around these developments propel analysts in zooming on jaw-dropping breakthroughs which eventually leads to adoption or success.
Cryptocurrencies experienced an all-time high, in the case of Bitcoin, an over 1500%, which is translated in dollar terms almost $ 20,000 in the last quarter of 2017.
This bullish leap could not be sustained due to features of the market and other externals interferences thus the plummeting of the premier coin selling at $9,800 this shock resulted in the significant pullback since last year breeding scepticism.
Volatilities are an intrinsic part of basic investment thus it is important to look at the bigger picture and not to focus on the daily market prices.
In my personal opinion, we should look beyond the face value and start thinking long term not focus on the current trend because we will end up missing out on the bigger picture.
Bitcoin cannot be predicted in the short term and these are few reasons I think why:
1. The market in my view can easily be manipulated by people who have significant capital — these are the “Whales” in the market;
2. Reminiscent of the dynamics of investment, news drives the market, emerging regulations and speculative regulations also tends to be a major driver of prices;
3. Attack on an exchange by hackers is also another factor that affects prices;
The existence of these uncertainties or unknowns makes it prudent to consider a long-term investment. We have to think long-term by asking ourselves intuitively the plausible advantages this new technology would bring to us in the future, or what will be its relevance in the world?
We have to ask ourselves if we understand the new technology, and fully grasp the knowledge needed to see this vision for the future to convince ourselves that our investment is worthwhile.
It is important to understand the technology in which you are investing and be convinced by the decision you intend on taking.
It is imperative you are contented with making a decision in this direction else the resulting situation would be that any time there is a correction or a huge crash in the short term you will always panic because you don’t know the fundamental value of your investment. In that sense, education is extremely important.
We need self-education to enable us to understand the blockchain technology and its prospects.
It is not advisable to take a loan or credit to invest in this new technology, that is why in my opinion. And according to a popular cliché, “do not invest what you are not ready to lose”.
Ideally, we know blockchain technology has come to stay and to give birth to a new economy like the dot-com and the train revolution in Britain years ago; what we aren’t sure of is its short-term prospect.
We have to think twice because cryptocurrency is not the quick easy money-making avenue. To me, “Cryptocurrency is highly volatile and hopeful with higher returns in the long term”.
We must note that all new technologies generate bubbles, after reading about the train technology, the dot-com crash and what happened on their arrival on the scene, I believe that bubbles have their own role in the mass adoption of new technology.
Therefore, I say bubbles are very important elements in new technology adoption. Internet (dot-com) and railway mania created a new economy and so will blockchain in my opinion.
Greed, fast and easy moneymaking people give birth to bubbles in every new technology. We need to note that.
Every new technology needs an infrastructure to drive it and the new economy it does create, and so is the case of blockchain technology.
The Initial Coin Offerings (ICOs) springing up in the wake of the blockchain with so much investment will go a long way build the needed infrastructure for our all-time great vision.
We shouldn’t only refer to the negative effects of the bubble because people lose monies, but we should also highlight the positive side of it which I know is worth pursuing.
My question is: Do we have cryptocurrency bubbles? Affirmative!
I believe it is going to take a long time for us to arrive because the gap between the technology and the price of the ICOs is huge noting that the ICOs are prepaid.
The blockchain technology has come to stay and we have to embrace it now or regret it later.
I believe African youth should not be left out in having their bite at this cherry, it is the time we get caught up in the wave of educating ourselves and others on this new technology.
I will recommend that our academicians both in public and private institutions take a microscopic look at this technology.
Africa needs to cash in on this trend. Let us embrace it before it is too late.
Time to go for the meal on the table instead of waiting to eat the leftover when the pay master is done eating.
– By Oliver K. M. Aziator | firstname.lastname@example.org
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