They bought crypto some years ago or recently, but all since then have been dealing with the drop in market prices. While some have lost significant amounts of money, they continue to believe in cryptocurrencies.
Hervé bought his first cryptos in 2017, because he believed “a little in the operation of Ethereum, the second most popular cryptocurrency behind bitcoin. † Ethereum was worth $120 at the time “, he says. When ETH rose to $1,200 almost a year later, it was the jackpot. He sold some of it in the process, when Ethereum was about $800 a unit, and made a nice amount in the process, which he chose to reinvest.
Except that the market didn’t quite play in its favor this time: after rising very strongly, the price of ETH started to fall again, falling by more than half. † But despite that I don’t sell » explains Hervé today. His decision may be surprising, but he believes in it. † The Ethreum blockchain goes live proof of commitmentwhich will use less energy† I hope the price stabilizes†
While bitcoin has been declining for 6 months, like Hervé, many of them don’t see the sudden drop in crypto currencies as completely negative. the “ long termists “, as some call themselves, do not want to see the fall of crypto as a fatality and believe in an imminent rebound in prices. Above all, they believe in the crypto project, and they are not there” just for the money †
“There can be no complete collapse”
This is particularly the case with Paul, who has invested in Ethereum mining equipment and owns a few bitcoin units. He’s not exactly motivated by money: he claims to be there” to support the system, among other things for experience and fun Above all, he sticks to the cryptocurrency project, and if he mines, it is primarily to participate in the project. Even if his bitcoins have lost value, the drop in price ultimately doesn’t worry him too much.
† With the number of major institutions that have invested in bitcoin, funds like BlackRock, banks like JP Morgan, companies like Tesla, states like El Salvador, there really can’t be a complete collapse anymore. ‘ he compares. † The only concern with bitcoin is that many people still see it as speculative value, and since it is not backed by tangible capital, it tends to yo-yo. ‘, however, he admits.
this lack of tangible capital is a criticism often directed at bitcoin: its value is not based on a company, unlike traditional stock markets. It’s partly because they’re not tied to a company’s productions or assets that crypto values can fluctuate so much — and European Central Bank president Christine Lagarde believes that “ cryptocurrencies are worthless †
But these fluctuations do not discourage crypto followers. Another person interviewed by Numerama explained ” hate speculation », and would have « wish crypto could become a real currency can be used to buy goods and as a cash reserve. Even Max, who first” really more interested in the financial side of things has since changed his mind.
† Today I am much more moderate and try to have a cash reserve outside of a centralized system, just in case† Although he admits that it’s always a bit annoying when you see that you have lost hundreds of euros in a few weeks “He doesn’t regret it. † Today I buy crypto to have less money in the bank† †
What future for cryptocurrencies?
In any case, they are convinced: it is not the crash of the Terra ecosystem that will sign the death of crypto. † In my opinion, cryptos have a bright future, and prices will generally rise in the long run says Max, who bought Ethereum and bitcoin. † In a context like today, where a lot of money has been printed, where war is going on and where times are uncertain, it is interesting to have value outside of a centralized system he notes.
More cynically, he even believes that the sudden drop in prices will make it possible to ” clear the market ” of the ” short term people † They’re just here to make a quick buck, and if the… If the market has a downward trend, they will want to run away to lose as little as possible. Which drives valuations down and keeps people motivated, whether through long-term profit or ideology “says Max.
Same story on Paul’s side: ” The drop in price is especially a welcome review for anyone who thinks cryptocurrencies are a way to make easy money. It’s wrong ! Not all cryptos are created equal, and it will bring a healthy distance on the market, he believes.
Above all, the price of crypto currencies is increasingly comparable to that of the classic stock market. † A stock like that of Nvidia has lost 46 points for 6 months and the company was the 8th capitalization in the world at the time.” Paul remembers. Shares of the microprocessor company, which sold for more than $329 in November 2021, have since fallen and are trading around $180. † So if the stock market doesn’t need to be warned, so do cryptos †