The crypto markets are in full panic mode. While the macro environment has provided a constant backdrop of impending doom for some time now, it’s the total collapse of Luna, Terra USD (UST), and the Terra ecosystem these tokens are at the center of, that has finally brought about a widespread state of capitulation.
Besides Luna immolating from over $80 to a flatline close to zero, the algorithmic stablecoin UST depegs wildly from the dollar, what’s also striking is the wider crowd psychology on display.
There are public expressions of shock and disbelief at the crypto crash that is occurring, and it is understandable that committed participants in the Terra ecosystem who have been hit badly might be feeling distraught.
And yet, more widely, while the exact circumstances vary from cycle to cycle, it has been explicitly predicted by many observers and analysts that crypto moves in repeating cycles, all apparently anchored around bitcoin’s roughly four year halvings.
Cycles Repeat, Details Change
The dominant thesis was that, similarly to 2017, and 2013 before that, we would see an enormous bitcoin run in 2021, which would cause Ethereum and altcoins
Altcoins
Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception there have been countless cryptos launched. Many of these have met varying levels of success, though several have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There presently exist over 5,000 altcoins and this number seemingly grows constantly. The paramount altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins can be different from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Why Do So Many Altcoins Exist?While Bitcoin is both innovative and massively influential, it does possess some problems that developers are trying to fix with their own products. Over time there have been developed altcoins that makes faster transactions, while also altcoins that are less volatile, or altcoins that are more private, etc.Altcoins also can have different economic models and their methods of distribution can be different. Moreover, their programming languages can be different, and they can support the development of different kinds of applications. While many altcoins have been built with amazing technology and have amazing potential to change the world, many of them have been created as methods of grabbing quick cash, or even as jokes.However, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme. Additionally, other joke altcoins have also experienced large market cap, such as JesusCoin.
Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception there have been countless cryptos launched. Many of these have met varying levels of success, though several have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There presently exist over 5,000 altcoins and this number seemingly grows constantly. The paramount altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins can be different from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Why Do So Many Altcoins Exist?While Bitcoin is both innovative and massively influential, it does possess some problems that developers are trying to fix with their own products. Over time there have been developed altcoins that makes faster transactions, while also altcoins that are less volatile, or altcoins that are more private, etc.Altcoins also can have different economic models and their methods of distribution can be different. Moreover, their programming languages can be different, and they can support the development of different kinds of applications. While many altcoins have been built with amazing technology and have amazing potential to change the world, many of them have been created as methods of grabbing quick cash, or even as jokes.However, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme. Additionally, other joke altcoins have also experienced large market cap, such as JesusCoin.
Read this Term to bubble up spectacularly, and then following the bull run in 2022, we should witness echoes or reruns of the crashes that occurred in 2018 and 2014.
That means that right about now we should have been expecting carnage, capitulation, precipitous drops, menacing red candles and expressions of apocalyptic sentiment. Or in other words, everything that we might have been braced for is now unfolding accordingly.
This is not to say that details don’t change from repetition to repetition. Certainly, no one knows for sure the depth or length of the comedown and hangover. Also, it is reasonable to expect a gradual leveling off in cycle volatility over years and decades, as crypto, or Bitcoin, at least ,matures and integrates. This would suggest, over time, peaks that are less dizzying, and dips that are more manageable.
What’s more, the triggers and side-plots will vary from cycle to cycle, and UST depegging while Luna plummets are brand new catalysts. It might seem dismissive to refer to a calamity on the scale of what is happening within Terra as a side-plot, but, for those who have always drawn an unwavering distinction between Bitcoin and crypto, it’s not an unreasonable classification.
Crashes Forge Maxis
That leads us to another question, which is what the ramifications of all this will be, moving forwards. Many people were traumatized by the 2018 crash due to losing significantly on altcoins, causing them to walk away entirely from anything blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Read this Term-related.
However, not everyone gave up, and of those that stuck around, some came to the realization that, when it really came down to it, bitcoin was the asset that mattered, that had purpose, and that would still be around in another couple of years, halvings and hopefully decades too.
Essentially, that cycle four years ago forged bitcoin maxis in disguise, who would maintain some degree of interest in the gains that could be made from altcoins, but no interest in the actual altcoins themselves, always knowing that Bitcoin is the endgame.
One variation this time around, is that it might not be just Bitcoin that comes out the other end with a few more high conviction holders on board, but Ethereum too, with its expansive, operational ecosystem and connection to web3.
Something else that is different in our current cycle, related to Ethereum, is NFTs. Due to NFTs being primarily (but not only) Ethereum based, we have an attractive future dynamic.
If you are into crypto to the extent that you start to see Bitcoin and Ethereum not as risky, but actually the opposite, as astute long-term holds, meaning you never feel under pressure to sell, then NFTs can be your fun-and-games wild card, but denominated in ETH and not requiring you to leave the Ethereum network.
Discount Opportunities
It is apparent, then, that for all the emotion that is flooding crypto at the moment, this current crypto crash has come along exactly when it was predicted to, even if some of the precise details were uncertain.
That being the case, it makes sense to carry the patterns forward and begin, even if the bottom is not yet in and maximum capitulation has still to occur, to start planning ahead on a month-to-year scale.
Looking at the market in these longer terms, and with trends continuing to play out, there are, or soon will be, if you’re expecting more blood, some bargains coming on to a market in the process of clearing out. This situation is made all the more interesting by the existence of NFTs, which will present some inviting entry points for those looking ahead.
There is no need to hurry, plenty of time to research, and there may well be further detonations yet to occur, but what is certain is that there will be opportunity-laden wreckage to pick through for gems.
As always up to now, while the headlines are a wild ride, crypto’s overall trends and cycles are doing nothing out of the ordinary. For investors that recognize this, it might soon be time to go discount shopping.
The crypto markets are in full panic mode. While the macro environment has provided a constant backdrop of impending doom for some time now, it’s the total collapse of Luna, Terra USD (UST), and the Terra ecosystem these tokens are at the center of, that has finally brought about a widespread state of capitulation.
Besides Luna immolating from over $80 to a flatline close to zero, the algorithmic stablecoin UST depegs wildly from the dollar, what’s also striking is the wider crowd psychology on display.
There are public expressions of shock and disbelief at the crypto crash that is occurring, and it is understandable that committed participants in the Terra ecosystem who have been hit badly might be feeling distraught.
And yet, more widely, while the exact circumstances vary from cycle to cycle, it has been explicitly predicted by many observers and analysts that crypto moves in repeating cycles, all apparently anchored around bitcoin’s roughly four year halvings.
Cycles Repeat, Details Change
The dominant thesis was that, similarly to 2017, and 2013 before that, we would see an enormous bitcoin run in 2021, which would cause Ethereum and altcoins
Altcoins
Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception there have been countless cryptos launched. Many of these have met varying levels of success, though several have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There presently exist over 5,000 altcoins and this number seemingly grows constantly. The paramount altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins can be different from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Why Do So Many Altcoins Exist?While Bitcoin is both innovative and massively influential, it does possess some problems that developers are trying to fix with their own products. Over time there have been developed altcoins that makes faster transactions, while also altcoins that are less volatile, or altcoins that are more private, etc.Altcoins also can have different economic models and their methods of distribution can be different. Moreover, their programming languages can be different, and they can support the development of different kinds of applications. While many altcoins have been built with amazing technology and have amazing potential to change the world, many of them have been created as methods of grabbing quick cash, or even as jokes.However, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme. Additionally, other joke altcoins have also experienced large market cap, such as JesusCoin.
Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception there have been countless cryptos launched. Many of these have met varying levels of success, though several have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There presently exist over 5,000 altcoins and this number seemingly grows constantly. The paramount altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins can be different from the Bitcoin network in any number of ways. This is often the primary reason for the existence of altcoins themselves.Why Do So Many Altcoins Exist?While Bitcoin is both innovative and massively influential, it does possess some problems that developers are trying to fix with their own products. Over time there have been developed altcoins that makes faster transactions, while also altcoins that are less volatile, or altcoins that are more private, etc.Altcoins also can have different economic models and their methods of distribution can be different. Moreover, their programming languages can be different, and they can support the development of different kinds of applications. While many altcoins have been built with amazing technology and have amazing potential to change the world, many of them have been created as methods of grabbing quick cash, or even as jokes.However, some of the joke altcoins have still managed to gather a significant number of users and followers. The most prominent example of this trend is DogeCoin, a cryptocurrency inspired by the Doge meme. Additionally, other joke altcoins have also experienced large market cap, such as JesusCoin.
Read this Term to bubble up spectacularly, and then following the bull run in 2022, we should witness echoes or reruns of the crashes that occurred in 2018 and 2014.
That means that right about now we should have been expecting carnage, capitulation, precipitous drops, menacing red candles and expressions of apocalyptic sentiment. Or in other words, everything that we might have been braced for is now unfolding accordingly.
This is not to say that details don’t change from repetition to repetition. Certainly, no one knows for sure the depth or length of the comedown and hangover. Also, it is reasonable to expect a gradual leveling off in cycle volatility over years and decades, as crypto, or Bitcoin, at least ,matures and integrates. This would suggest, over time, peaks that are less dizzying, and dips that are more manageable.
What’s more, the triggers and side-plots will vary from cycle to cycle, and UST depegging while Luna plummets are brand new catalysts. It might seem dismissive to refer to a calamity on the scale of what is happening within Terra as a side-plot, but, for those who have always drawn an unwavering distinction between Bitcoin and crypto, it’s not an unreasonable classification.
Crashes Forge Maxis
That leads us to another question, which is what the ramifications of all this will be, moving forwards. Many people were traumatized by the 2018 crash due to losing significantly on altcoins, causing them to walk away entirely from anything blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Read this Term-related.
However, not everyone gave up, and of those that stuck around, some came to the realization that, when it really came down to it, bitcoin was the asset that mattered, that had purpose, and that would still be around in another couple of years, halvings and hopefully decades too.
Essentially, that cycle four years ago forged bitcoin maxis in disguise, who would maintain some degree of interest in the gains that could be made from altcoins, but no interest in the actual altcoins themselves, always knowing that Bitcoin is the endgame.
One variation this time around, is that it might not be just Bitcoin that comes out the other end with a few more high conviction holders on board, but Ethereum too, with its expansive, operational ecosystem and connection to web3.
Something else that is different in our current cycle, related to Ethereum, is NFTs. Due to NFTs being primarily (but not only) Ethereum based, we have an attractive future dynamic.
If you are into crypto to the extent that you start to see Bitcoin and Ethereum not as risky, but actually the opposite, as astute long-term holds, meaning you never feel under pressure to sell, then NFTs can be your fun-and-games wild card, but denominated in ETH and not requiring you to leave the Ethereum network.
Discount Opportunities
It is apparent, then, that for all the emotion that is flooding crypto at the moment, this current crypto crash has come along exactly when it was predicted to, even if some of the precise details were uncertain.
That being the case, it makes sense to carry the patterns forward and begin, even if the bottom is not yet in and maximum capitulation has still to occur, to start planning ahead on a month-to-year scale.
Looking at the market in these longer terms, and with trends continuing to play out, there are, or soon will be, if you’re expecting more blood, some bargains coming on to a market in the process of clearing out. This situation is made all the more interesting by the existence of NFTs, which will present some inviting entry points for those looking ahead.
There is no need to hurry, plenty of time to research, and there may well be further detonations yet to occur, but what is certain is that there will be opportunity-laden wreckage to pick through for gems.
As always up to now, while the headlines are a wild ride, crypto’s overall trends and cycles are doing nothing out of the ordinary. For investors that recognize this, it might soon be time to go discount shopping.
Source: https://www.financemagnates.com/cryptocurrency/predictable-crypto-chaos-brings-opportunity/