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Bitcoin, Ripple XRP, Ethereum and other cryptocurrencies have slumped by $ 642 billion in 2018

Bitcoin, Ripple XRP, Ethereum and other cryptocurrencies have slumped by $ 642 billion in 2018  - krypto marktausradierung min

Yesterday at noon, crypto markets had a total market capitalization of $ 187 billion for a while. Capitalization has dropped $ 642 billion from the all-time high of $ 829.96 billion. This is also reflected in many coins that have lost significant value compared to the beginning of the year. These include the big ones like Bitcoin, Ripple XRP and Ethereum, as well as the smaller Altcoins, which often had to take even more massive losses.

The crypto market can be roughly divided into “high-performance” and “low-performance” cryptocurrencies. The “high-performance” coins experienced sell-offs with subsequent wild corrections at their highlights this year. FUD's regulations, rejections of Bitcoin-based exchange-traded funds (ETFs), ICO bans, and much more all made sure that all crypto currencies continued to fall. By contrast, mild positive signs could not do much.

The “underperforming” coins, also referred to as “scamcoins” or “shitcoins” in pop culture, depend on their courses for “high-performance” cryptocurrencies. They also suffered heavy losses. These were fueled by sales. In many cases, “underperforming” coins were sold this year for Bitcoin or Fiat currencies, such as US dollars or euros.

The basic problem is that no fresh money has entered the market. This is especially true with regard to retail investors, which had created a growing demand in 2017.

Bitcoin received much attention in the mainstream media by the end of 2017. This made it a highly risky and at the same time profitable investment asset. Thus, an irrational exuberance developed, which drove the course to heights that were no longer covered by strong foundations. It was similar before the stock crash of 2008 or the dot-com bubble in the 1990s.

Many investors reacted in panic to the price decline and also sold at a loss. This is likely to continue until the big institutional investors agree to buy cryptos at a low price, especially when retail demand is lacking. Clear regulations should be the only way to get the small investors back on board. The approval of exchange-traded funds (ETFs) on a crypto basis and the option to buy options could also make new investments possible.

Even though the crypto markets have lost even more in percentage terms than the markets at the bursting of the dot-com bubble, the situation is not comparable. Billions of dollars are still pouring into the industry. At least in the short term, the values ​​are secured, because many investors have invested money. The goals are different. Some want to promote innovation, others just want to make a good profit.

A stock market price still depends on confidence. As long as Bitcoin and other cryptocurrencies provide opportunities to save or simplify financial transaction costs, they have real value. With real value in real life, your price should not go down to zero. The current downturn could therefore turn out to be a mere market shakeout in terms of “underperforming” cryptocurrencies and their investors.

Bitcoin, Ripple XRP, Ethereum and other cryptocurrencies have slumped by $ 642 billion in 2018  -

Sources: Cryptocurrency courses, Bloomberg, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-ripple-xrp-ethereum-and-other-cryptoworthings-for-642-billionaires-usd-breakbrochen-in-2018/

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