I have to admit I was kind of shocked when I saw this whole crash happening. It was quite unexpected, especially since the recent value increase after black friday. But, there is something positive about all of this that I've noticed as well.
So far Hive seems to be doing fine, with a value of 1.88$ at this moment (I just checked), it's still way above the value of just a few weeks ago. Not unexpected though, since we've got a great growing community here and a real alternative economy, so no reason for it to drop. I don't see Hive as just a volatile investment tool, but rather as a real currency that is used to compensate hard work. This decentralized social media network is here to stay, especially since censorship on other social media is on the rise. Hive is necessary and it will continue to grow and become stronger.
Hive isn't the only cryptocurrency going well, because the Metaverse coins like MANA are also doing quite well. And the explanation is simple. Something real is behind things like Hive and MANA. It's not just investing into the air and looking to get a quick buck. No, we are working on creating alternative worlds, together. And that is where I have hope.
Because like I said, what we see here is real actual alternative currencies and not investment tools. It means that we are witnessing the fact that the cryptocurrencies without something behind it, will see their heads cut off. And the real projects getting a chance. Instead of having investors jump out of cryptocurrencies entirely, they are moving towards the good ones. And that is really great to see.
So why did Bitcoin in particular drop?
Germany's new chancellor Olaf Scholz at the end of November warned over a "tulip"-style bubble developing in the cryptocurrency market, adding "the currency monopoly" must remain in the "hands of states." The sudden Bitcoin and crypto sell-off, coming alongside some serious stock market declines, follows a warning made by famed investor Louis Navellier.
Now The Federal Reserve is tapering, and this should create a correction in risk assets, of which Bitcoin is a part," Navellier wrote in comments first reported by Insider. "The more the Fed tapers, the more volatility we should see in both stocks and bonds, and yes, bitcoin, too."
Conclusion:
The decline might continue for a while. However, I do not agree that this goes for all cryptocurrencies. Coins like Hive are going to survive, because they function as compensation for something real. What do you guys think?