This has been rumbling around the crypto market for about the past month as the market took a substantial dip. While HODLers keep HODLing some crypto newbies seem like they are about ready to cut their losses and jump ship.
There are a couple aspects of this question that are found inherently irksome. So instead of answering it, here are 2 questions that people should actually be asking. Take a look below.
Why are people only looking at blockchain technology as a
short term cash out investment?
Of course, one can invest in technology but in doing so they are supporting its expansion, growth, and adoption. Because blockchain is so intertwined with crypto, a literal currency, the vast possibilities for its application have been overshadowed.
For crypto newbies out there, blockchain technology is the standardized ledger system that was created so that Bitcoin could be anonymous, transparent, and decentralized.
That being said the possible applications for the technology go far beyond a currency. For example, a blockchain platform can be used to create trust and transparency between businesses through the use of smart contracts. Or as a ledger
So even when the market is down for Bitcoin and Ethereum does that mean blockchain technology or blockchain projects lose their value as well? No, of course not.
Why does anyone not want to invest when the market is down?
This is a simple investment principle. Ideally, when someone sets out to invest, they would like to buy at a low point. If they wish to turn a profit on their investment, they would then try to sell at a high point. However, humans beings do not always work in a simple logical way. People are often quick to be caught up with trends, hype, or panic. Which is not a very wise way to handle investments fiat, crypto or otherwise.
So of course the true believers do not support crypto currencies but support the adoption of this new technology.
In case someone reading is worried about the market, above is a live recording of the bitcoin transactions on Tuesday, December 11 around the course of about 2 seconds ….
Crypto newbie? Click on some of our articles on crypto basics. For example, click here to find out what a crypto wallet is.