No Lambo For You: Crypto Is Not A Magic Gateway To Untold Riches
August 15 2018 - 5:48AM
ADVFN Crypto NewsWire
No Lambo For You: Crypto Is Not A Magic Gateway To Untold
Riches
Time To Accept That Crypto Prices Are Not Important To
Mainstream Adoption
Psychologists helping people come to terms with traumatic events
use the Kübler-Ross model as a framework. Popularly known as the
‘five stages of grief’, it describes the emotional process people
go through to accept their situation.
First comes denial, quickly followed by anger and frustration;
then there’s an attempt to bargain, either by turning to God or
reforming the lifestyle; there’s despair and depression, and
finally acceptance.
Crypto’s total value has been on a downward spiral almost since
the start of the year, which three surges have done little to
reverse. The market fell by 12% in the past 24 hours, from $217bn
to $191bn; since the all-time peak of $822bn in mid-January, the
market has declined by 73%.
This is an all-year low for the market; the lowest since early
November. The community is still trying to come to terms with
it.
Not everyone’s at the same stage. Ethereum’s creator, Vitalik
Buterin, seems to be in denial anything’s amiss, as he expresses
approval for eliminating screening at small-scale
airports, on Twitter today.
Mom and pop traders angrily sell their digital assets
exclaiming they’re cutting their losses, otherwise lil’Jimmy can’t
go to Disney Land next year. Never one to miss an opportunity,
Bitcoin Cash’s (BCH) proselyte Roger Ver urges people to buy BCH at a
bargain price. Depressed investors post with the #rekt
hashtag: “Abandon all hope, ye who enter here!”
The speculators have a lot to be speculative about, right
now.
Crypto prices are
secondary
It’s easy to conflate price movements with the state of the
market: but price is a perceived value that needs roots in
actual value in order to be maintained. Even brand leaders
in other industries that are able to command a price premium –
Apple, for example – have their perceived value rooted in a
long-term commitment to actual products that meet actual needs.
It would be very straightforward if price reflected a project’s
value and long-term viability in cryptocurrency, as it does in the
‘real world’, but right now it doesn’t; rumors and hearsay are
highly influential.
Coins move in tandem, especially in relation to Bitcoin (BTC).
The recent slide (and the preceding uptick) followed the SEC’s
upcoming ruling on Bitcoin ETFs: $30bn was immediately wiped from
the market when regulators decided to postpone their decision until
the end of September.
This gives an indication of how inaccessible cryptocurrency is,
even for the seasoned investor. Few projects have rolled-out
the complete package that was promised pre-ICO, making it difficult
to determine an accurate value; no one can say with any certainty
whether Ether’s utility gives it a natural value or $1,000, or just
$10. We can’t even say for certain if XRP is a security, and it’s
the third largest cryptocurrency by market capitalization.
Crypto is more than just numbers moving on a screen,
it’s about improving society and ultimately, people.
This publication habitually features innovative use-cases; how
projects see decentralized ledger technology (DLT) as the solution
to existing issues, so far unresolvable or inefficient.
Since the beginning of August, we’ve looked at blockchain being
used in the fight against internet
censorship; including the de facto authority
tech giants wield on their social media platforms. VeChain
(VET), down 15% today, is developing a vaccination record
to protect routine inoculations; increasingly, cryptocurrency is becoming a means
to give to charity
Recalling her appearance on CNBC Markets today, Meltem Demirors,
Chief Strategy Officer at CoinShares, told Crypto
Briefing back in mid-June how price shrouds the progress
of the entire industry. “Price is only one metric and a
very imperfect one because it is based on perception: the reality
is there has been a tremendous amount of
growth,” Demirors said.
Cryptocurrency does not automatically produce millionaires, nor
is it a gateway to universal Lamborghini ownership. A price
decrease hurts, for those who see crypto investment as a
profit-making exercise; but wailing over a sub-$200bn market
capitalization is background noise. It won’t bring January
back.
The community (and the mainstream media) need to stop
fetishizing price. Perhaps that sounds harsh.
But acceptance of that fact is the
only option.
Unless ETH shoots up 70% tomorrow.
By Paddy
Baker
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