Cryptocurrency gained mainstream adoption towards the latter half of last year. Many individuals decided to jump on board with the altcoins that would make them the most money, in the quickest amount of time. Most had zero to little investing experience, and when the market corrected the second week of January, all hell broke loose. For most individuals that have investing experience, they understand that market correction is inevitable, but “panic” selling became the immediate response among the inexperienced investors.
Source: CoinMarketCap[1]
However, exchange issues ultimately started the fall of cryptocurrencies and with the panic selling it created the “perfect storm.” In less than a month, the entire cryptocurrency market lost over $550 billion USD. Now, an issue plaguing the market is that individuals won all these altcoins, but most have zero knowledge of what they actually seek to do or where they are at in building or upgrading their products.
Cardano’s founder and former CEO of Ethereum, Charles Hoskinson[2], made a statement via his personal Twitter (NASDAQ:TWTR) two weeks ago and said it best. If you don’t follow him, I suggest that you should, he said[3]:
“The ignorance and stupidity of day traders never ceases to amaze me. I do not and legally cannot influence price. It’s not within my power. Stop looking to me as a get rich quick solution. I’m here to build Cardano, and we are probably doing that every single day. The markets went from 250 dollar bitcoin to 20,000 dollar bitcoin in a year without much change in fundamentals. Add that these are thin markets, mostly unregulated, subject to black swan events and filled with retail money. = massive volatility and high risk. What’s not clear? If you get a 10x on a trade, then someone is on the other side of it. Ask yourself why they are buying? If it’s to get another 10x, then you have a serious problem. Coins need utility and real-world use prior to preserving their value. It is my job not to be phased by the daily volatility of the markets. I have to build the most complex cryptocurrency ever designed, using formal methods and peer review, in record time and somehow get global adoption. How about I focus on that instead of the daily price? … I deeply care about the state of crypto. It’s not healthy. It’s filled with greed, corruption, and toxic people. All of them are draining the life and capital of good honest people. But I simply have no power other than warning people and being a spectator. I just can build Cardano and work on our other projects as we do every single day.”
Brava, Mr. Hoskinson, Brava. Many of the day traders, looking to get rich don’t understand the magnitude and time it takes to develop these revolutionary products. Some of the coins on my list, have working projects and are past
