Ever since I entered this crypto world I heard and still keep on hearing all sort of ideas and theories regarding cryptocurrencies and how they're gonna disrupt the banks, on what fundamentals is the whole thing created and especially some cryptos and how much of a "trash" is that coin compared with BTC or the other that doesn't have too many supporters.
Yeah I call them supporters because sometimes scrolling through crypto twitter or watching youtube videos it feels like on football forums. But does the market really care about such fundamentals, do the prices reflect the value of a certain crypto project based on pure fundamentals or is just pure speculation? I think just a few cryptocurrencies might do that and I don't see Bitcoin in there with or without its lightning network.
The crypto market as I see it at the moment doesn't fluctuate based on fundamentals but on speculation, fear and greed. However there are plenty of investors that "stick to fundamentals" and are convinced idealists no matter what, loosing money on the way. In my opinion one should decide once and for all if he/she is in this crypto train "for the tech" or for profits.
By profits I refer to USD, GBP, EUR...etc and not satoshis. If one is that much into the fundamentals of this blockcain and crypto revolution and believes in financial freedom, decentralization, disruption of the banks, etc etc etc then "that one" should not even look at prices for one or two decades. It would be better to stack his BTC or whatever crypto he believes in on a wallet or multiple wallets and continue purchasing no matter the price is. Because he has a vision and that vision is not paired with USD...
BUT if one is fiat profits oriented then I would say fuck the fundamentals and the idealism!. To earn fiat profits there's TA, pumps and dumps, hardforks, buy the rumor sell the news and other ways of adding more of your fiat to your bank account. It doesn't matter that much whether the coin you have invested in now and took profits out of in two months will still survive after one year or not. You earned your money, left the game. Easy.
Some crypto people however, as I see them, are idealists and that won't make them too many profits because the crypto markets don't care about fundamentals, idealism, decentralization and so on, but are still eager for making more of that fiat although they dream of disrupting the banks. Cryptocurrencies are listed on exchanges and are being traded by people like you and me, bots, drug dealers, tycoons, scammers and so on. Thus how can their price be reflected by their functionality if almost nobody trading them cares about that...?!
Ideally, again in my opinion, Steem should not be priced at less than 30 cents. It works, it works non stop, apps are being developed on it constantly, transactions are fast but it's still ranked 47th while Tron is number 8th... Why? It's because Tron gets in the news constantly and gets hyped about, not because its fundamentals are better than Steem's. However people still don't pay that much attention to that and haven't decided yet if they want to earn money out of this crypto game or secure themselves the currency of the future, because there's a big difference between both investments.
As a last opinion on this too long post of mine, the ones selling BTC under $4,000 are either professional traders that know how to sail the waves or disappointed idealists. One has to decide on which boat wants to travel or he will sell cheap Bitcoin to bankers, because banks are not stupid and they never go on TV talking strategies. Sooner or later they will take in our fiat for crypto at huge prices... and then the idealists will come back dissappointed with an I told so on their face buying their sold BTC at an astronomical price.
Source of image: pixabay.com
Thanks for attention and have a great day!
Adrian