Crypto Downtrend
How The Crypto Downtrend Will Help The Ecosystem
The newest form of a currency system has hit a new low in its exchange. Bitcoin has sunk below the USD 20,000 mark. Investors are in a hurry to sell off their bitcoins to save themselves from more losses. Five years ago, when the crypto market was establishing itself, the same USD 20,000 mark looked like a success of the crypto market. However, the times have changed and this mark is now a gravestone sitting on the dreams of many.
A lot of people entered the crypto market in the hope of making a quick buck and living a super-luxurious lifestyle by buying Lambos and yachts. The loss has taught the investors to act like tough entrepreneurs in a market that is highly volatile in nature. Crypto downtrend has taught them to think about creating value for the ecosystem, rather than consuming it.
Understanding the Market Conditions
The market is going through a downtrend at present. Angel Investors have been warning people about this crypto downtrend in the crypto market for a long time. Anyone who knows risk management was preparing themselves for this recession. It is a known fact that a bear market always follows a bull market and vice-versa. However, most of the investors who were investing in crypto were not prepared for this fact. As a result, the bubble inflated and finally burst.
Was there proper risk management on the part of people and even organizations? The answer is negative. Any sort of investment, any sort of market has risks involved. Investors are usually aware of that. Accepting that there are risks is a rather smart move. It means getting ready to see the downfall become a reality.
The market downturn has hardly affected people who build their businesses and perhaps run them keeping a complete account of profits, expenditures, and risk assessment. The downtrend has affected mostly the people believing that there will be a bull market forever.
The market crash is actually good for the Ecosystem
The market crash burst a bubble of pipe dreams and quick bucks. A lot of investors speculated about the market rather than preparing a risk assessment plan. At present, nearly 75% of the investors in the crypto market consist of the speculating type. The losses dragged the dependent businesses down.
Experts say that the market crash will work as a lesson for the useless profiteers and those who speculate about the market. It drives away those who got lucky to make some money but then proclaimed themselves financial messiahs and gurus. It will kill off startups that build their businesses on an endless streak of grants instead of sound business models. This will cause programmers to join real projects with a steady economy, risk management, and true sustainability.
Investors and organizations who have a risk assessment plan will survive as there will be crashes again. The market will go down again, just like a market does usually. However, with each of the cycles, more efficient businesses that care about making a change and not a quick buck will rise.
The crypto market will develop in the future and become more stable. It will also give high returns and there will be serious investors. Cryptocurrency and NFTs are the future of technology and a lot of investors, as well as big organizations, are showing an interest in them. If you want to explore the potential of NFTs to the fullest, you can try using Koop360, a community-based project maintained by the community through bots.
The crypto market is not a scam or a pyramid scheme. Just like the traditional stock exchange, this too has gone through the cycles of upturn and downturns but has come out to be more attractive than before. You as an entrepreneur must care more about risk management in such a high-risk and volatile ecosystem.
Just don’t forget about proper risk management.
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