If you go to CoinMarketCap, you will see a sea of red on the column for price change. Most of the cryptocurrencies are on a double-digit negative. The falling market prices have been the story since the last week of December 2017 when Bitcoin prices hit its all-time-high of $20,000. Wave upon wave of correction has welcomed 2018, and it seems that it is still ongoing. As of the time of writing this article, the total market capitalization is currently at $287 billion, which is almost the same level during the pre-Bitcoin hype of mid-November 2017. If you just invested in cryptocurrencies a few weeks or months ago, you might be feeling frustrated or even scared at this point, and it would be completely understandable. Nobody wants losing money on investments.
Understand Your Investments
Speaking of investments, however, it is advisable to keep in mind that you should only invest on things that you understand. You do not invest in stocks without doing background checks on companies. You do not invest in real estate without understanding the real estate industry. Just the same, you should only invest on cryptocurrency if you understand the technology.
Innovations, not Money-Making Schemes
The cryptocurrencies are the newest innovations coming from the utility of the Blockchain technology. If you are a new investor who looks at cryptocurrencies as a way of making quick cash, you might only disappoint yourself.
The Blockchain is the future of business models, financial transactions, and the entire business industries as a whole. All the possible practical applications of the blockchain technology are still being explored and are at experimental level as of this day. However, the possibilities of financial and non-financial applications are very promising. In terms of financial applications, most banks and businesses turn to the blockchain technology for the improvement of their transaction histories and transparency of their ledgers. In terms of non-financial applications, most businesses and even governments consider using the blockchain in improving the transparency and proof of existence of all health records, legal documents, payments, licenses, and other possible documents needed by the general. The blockchain has the potential to be the future of data storage and public access, where all records are verifiable and trustworthy.
The Future is Here
So, with that said about the Blockchain technology, it is a very promising innovation. If you are still invested in cryptocurrencies and are already losing heart because of these massive waves of corrections, just go back to the basics and fundamentals of the Blockchain technology. If you also believe in the potentials of the Blockchain, then you should just hold on tighter to you investments, as the potentials for growth are very great. Otherwise, if you are skeptic of this innovation, you might want to consider cutting your losses.
