A lot of friends of mine are shocked by recent plunge in cryptocurrencies. Many of them are spectators in this case as they have sold their coins at the very beginning. However, for me, I purchased ETH almost at its highest point and I am still holding them.
If you ask me if it is the end for the cryptocurrency era, my answer is : DEFINITELY NOT!!
ETH price in 90 days
From the figure, we can see that price of ETH has almost dropped to the point when it started to skyrocket in May. Although a further drop is expected during the period around 1/8 (a potential split of Bitcoin), the value of the currencies is backed by their concepts behind. The disrupting technology -- Blockchain is still influential and it can support the bounce back of cryptocurrencies prices in the long term. In fact, the movement of prices is often affected by the transactions of the financial predators. They enjoy massive return by manipulating the prices in the market. Meanwhile, the volatile cryptocurrency market is always their favourite. They kept having a short position in recent weeks and created a perfect downturn in the market.
Soros says hi
However, it is hard to maintain this way when good news come in the market. As I have mentioned in another article, the ethereum developers may announce the third update of ethereum (--Metropolis) in September. Also, the demand of ETH derived from the ICO activities will still be another factor supporting the price of ETH.
It is the same for Bitcoin. Once people have digested the news in August, uncertainty will be gone and price will immediately bounce back. As the leader in the crypto market, the revive in Bitcoin will have positive effects on others.
Therefore, despite the recent setbacks, there is still a bright future of cryptocurrencies. Concepts like blockchain, smart contracts, decentralisation etc. are something that convincing and attractive to people and thus they will be the forces that the predators cannot beat.
So, let's believe in cryptocurrencies and expect next peak in the near future.