Will the cryptocurrency party over? This question always haunts all crypto players. To answer this question, take a look at the simplest thing. In the past year, hundreds of new crypto have emerged. Almost every week, some crypto either perform ICO or launching without ICO. The question then is, “Is this ideal?” Certainly not. Something that is not ideal will definitely be corrected. Because nature always corrects something not ideal. Although we do not know when and how nature will correct this crypto boom this time.
Ideally, out of hundreds of cryptoes born there will be only a few left. Because it is impossible for the world to use hundreds of crypto at the same time. Of course the survivors are the fittest and the most adaptable, just like Darwin's Theory.
Correction can occur in a subtle way but sometime be a rough way or hard. Rough or smooth depending on how big the variant, or the bubble. The bigger the bubble, the harder the correction. Even if the bubbles very large, then it will very hard crash or free fall.
Is this crypto bubble big enough this time? It's relative. Some say big enough and some say normal. But I want to say yes, the crypto bubble this time is huge. FYI, the total daily crypto transactions currently is in the same size of the NYSE daily transactions that have been built for hundreds of years. It has never existed in history that any product on earth has the size of its daily transactions as the NYSE in just a few years. This bubble is really big. And someday it will erupt, maybe very hard. But we do not know when.
Btw, there's nothing we can do with that growing, enlarging, bubbling, and erupting cycle. Because it is natural, and not in our control.
The important thing is how we can play in the bubble or sail in this big tide.
When this frenetic scene is over, there are three groups of people. First, who made very big profit. Second, who suffer very big losses. And third, who regret and cry.
The big winner is who ever bought with low prices and could sell at a very expensive price. The big losers are who bought when the price was expensive and sold late when the peak has passed and the price fell, even did not have time to sell until the price is near to zero.
The big regreters are who bought when the price very cheap and did not have time to sell them when the price was expensive because they expect a bigger profit until finally the peak period passed and the price fall. Game over. They had felt rich and counted their crypto assets every day, but have not been sold until the tide was over. They will regret it for the rest of their life.
In any economic bubble, the total profit and and total loss if combined is generally the same size. We call it zero sum game. So the global economic and long-term effects are zero.
Therefore, for the crypto player, make sure you are in the first class or a big profit and can take advantage of this booing well. Although there will always be others who lose. Like in the arena, there is always a loser and winner. We can not make all winner in the arena.
For risk avoider, it is best to remain in their own field and remain a good audience while awaiting the birth of new financial technology in modern history. When the noise is over and the market becomes normal again, that's when you can enter. No risk of fluctuation anymore. And there is no chance of riding a tide again. And you can enjoy a more modern, fast, efficient, and flexible financial system. Maybe it will be government interference there later.
Let’s hope the correction will be soft and enjoy the tide.
Rahman,
Clean Energy Investment Expert - Indonesia