What to Do when Cryptocurrency Bear Markets Rule?
It has been a long time since cryptocurrency rose up to its full potential. Now it’s more like dead water, muddy and stagnant. Staying in one place and within time, it evaporates. The same goes for the cryptocurrency market, as the price slowly drops. Many questions arose, is this the end? What is on the horizon? Continue reading and see what is the honest opinion of the iCE3X team. Keep in mind, this is our opinion and we do not have responsibilities for your investments. After all, it’s your money.
Why is this happening?
First Reason: The Environment
First and foremost, the most important thing is we need to keep our environment, our planet, clean and in good health. Then we can worry about creating a wealth creation mechanism in the face of bitcoin. The resource that bitcoin is using to process is electricity. There are so-called Miners who are processing all the transactions that are happening with bitcoin in order to process the transfers from point A to point B.
The process is Mining. There should be a minimum number of miners at work to maintain the public blockchain ledger. In other words, without miners and the electricity, cryptocurrencies are just a set of encrypted numbers with no value. As we know not all ways of producing electricity are eco-friendly. The costs of the electricity are rising, therefore, the prices are dropping because any rational investor would stand clear of mining if the costs of mining are higher than the actual price you can profitably mine.
Second Reason: Regulatory Concerns
Governments see the potential that the cryptocurrency has, and that’s why they are afraid of it. Moreover, they do not know how to regulate it, since it’s decentralized and everyone has rights on it. You can not simply put it under the jurisdiction of someone who has full control, like right now with the Banks and FIAT currencies. Now, if you have money in the Bank, and for some reason, a government official calls (or the police) and requests a lockdown of your account, your money is gone. You can not access them anymore. With cryptocurrency though, that’s not possible.
Your keys, your money. And the most beautiful thing is you can send them all over the world, not locked and limited to just one country. Moral of the story, all of the major countries like
Third Reason: Market Manipulation
With those low prices, market manipulation is relatively easy. Now people are more afraid of investing as they do not know where the prices will be in a day, week or a month from now. Therefore, those that are in the game for longer, with more experience and number of cryptocurrencies can manipulate the prices. Whenever the price goes up, people follow. Same applies whenever the prices go down. Here is a really nice article about “why cryptocurrency prices dropped” with more explanation why the prices are indeed dropping.
Fourth Reason: Power Consumption
As I already mentioned about the electricity, which is a problem. You can’t stay in the game if you are forced to pay more than you earn. You just simply have to shut down the business otherwise. And yes, mining is a business that makes money or used to. Nowadays there are a lot of miners, but they are either in countries where the electricity is cheaper, or they are big farms that can afford it because they are getting a fair share of the actually mined bitcoin, or other cryptocurrencies.
Now, what I didn’t mention above is the equipment price and maintaining it. Yes, the parts to build proper equipment are quite expensive. Nowadays to build proper mining rig which can hit up to 200 hashrate costs about R50 000. Add to that that the first months will just be about trying to return the investment for the rig (mining machine). Then, add again the electricity and what has left as profit? That’s why is kind of insane those days to pay for a rig and start mining.
However, if you are keen and very interested in mining, we have a
Fifth Reason: Industry Scepticism
Another reason for large drops in prices is caused by scepticism around cryptocurrency. To some extent, this is because, the promise to bypass the mainstream, centralized economic system and enable peer-to-peer payments has been disappointing so far. Yes, there is the Lightning Network coming up, but it’s a few months old and just in its infancy still. Tests are ongoing and we can not blindly trust it yet. It still requires some time to show its full potential.
Yet, if you are keen to read more about Lightning Network, we have dedicated a great deal of time to write numerous articles about it.
Major Players in the world of the finance, such as Warren Buffett and Jamie Dimon, constantly express their deep scepticism of cryptocurrencies, as they always point out that bitcoin and the rest of the cryptocurrencies are facing a real battle for acceptance.
Did Everyone Give Up on Bitcoin?
No! No one has given up on bitcoin. There are so many people trying to help out, find out how to make the transactions fast and secure. How to make the system work even smoother and implement it in real life payments. We have written an article about the
Can I still trade and make money?
Absolutely, yes. It doesn’t matter what the prices are if you are going to
However, we are covered here too. What we did at the iCE3X team is to create a Course about Trading. We called it Trading Course 101, as it’s targeted for the beginners and people that want to understand what is the actual trading, said in simple, easy to consume words.
We called it Trading Course 101, as it’s targeted for the beginners and people that want to understand what is the actual trading, said in simple, easy to consume words.
What can you do is checking here and there what is happening with the prices. Are they going up or
Never forget to have FUN. Hey, you just thought it! We at iCE3X got covered you with that too.
We wish you luck and have fun!
What do you think, is there a feature for the cryptocurrency. Are you a believer or a sceptic? Yay or Nay?