99% of Crypto WILL FAIL. The crypto winter has thrown many… | by Mohammad Hakim | June 2022

Crypto Winter has thrown many wallets into a shit storm.

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With many currencies trading 20-70% off their all-time highs, it can be very daunting for investors hoping to make a profit.

Crypto is in a bear market.

And we may not see a bull run until the next bitcoin halving, which is in 2024.

Historical data shows that after the bitcoin halving, a bull run ensued.

The most recent halving occurred on May 11, 2020, followed by a bull run that took the price of bitcoin to $64,507 from $8,787.

I would also think that the stimulus checks amplified the bull run.

The crypto markets are full of worthless projects with no utility or purpose. Instead, many are pump-and-dump schemes that aim to take money from new investors and enrich the ‘founders’.

Thus, it clouded the noble purpose of cryptography.

For new investors, crypto markets seem like the Wild West. As the space is largely unregulated, institutional investors are unwilling to enter it. As a result, we have seen the massive implosion of hedge funds betting on crypto projects, such as Three Arrows Capital.

Kevin O’Leary said that like any new technology, cryptocurrencies are going through a phase of sacrifice. The bear market will eliminate bad projects without strong fundamentals.

Mr Wonderful gave the example of Amazon during the dotcom bubble. The company struggled to get up as its share price continued to fall for months. However, as we see today, the company has grown into the e-commerce giant that it is today.

Amazon is built on solid fundamentals, which contributed to its success.

The cryptocurrency is volatile due to a lack of institutional funds.

The market is mostly based on news, rumors and retail sentiment. Thus, a tweet from Elon Musk could cause Dogecoin to pump, while an impending recession could cause people to withdraw their money.

According to industry insiders, having more institutions participate in crypto could allow for more stability in the crypto market.

However, the concern is the lack of regulation.

The implementation of regulation in crypto markets is a contentious issue.

On the one hand, crypto evangelists believe that the market should be free from any influence from centralized institutions because it goes against the fundamentals of technology.

On the other hand, some believe that regulations are needed to give investors the peace of mind that their hard-earned money will not disappear overnight.

The implosion of UST-Terra was a stark example of what happened when decentralized finance (DeFi) failed.

It really is a dilemma.

Currently, governments are starting to draft regulations on digital asset management. We can only wait to see what happens.

Cryptocurrency and blockchain technology is still in its infancy.

The development of technology will always be surrounded by hype and speculation.

However, there will be some that are based on solid foundations. This will allow them to weather the storm that is occurring.

As governments continue to produce regulations, we can expect to see more money inflows from institutional investors. This will help prop up the crypto market and stabilize it further.

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