Bitcoin and other altcoins are in a difficult time as prices of digital assets are becoming low making some fizzle out.
The crypto meltdown has not only affected the crypto companies but also crypto exchanges. Platforms like Gemini & Coinbase have retrenched some of their global staff in recent weeks.
The looming global recession is not helping matters as well and it remains a concern if Bitcoin and other cryptocurrencies will survive. Bitcoin has had its price more than halved in recent weeks which has also made top altcoins like Ethereum, Cardano, etc. sell low.
In this post, we’ll discuss the likely position of Bitcoin after the current crypto meltdown. For the sake of beginners, let’s learn more about Bitcoin.
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator. It can be sent from user to user on the p2p bitcoin network without the need for intermediaries.
The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.
As of today, Bitcoin is the largest and most popular cryptocurrency. Several other coins have been created using its model and are known as altcoins i.e. alternative currency.
As at the time of writing, BTC sells at $20,348.15 USD with a 24-hour trading volume of $21,341,373,286 USD. Bitcoin is down 1.24% in the last 24 hours. It has a live market cap of of $388,240,298,935 USD. There are 19,079,881 BTC coins in circulation.
Why Do People Want Bitcoin?
Recently, there has been a storm in the crypto industry due to the collapse of Terra’s UST & LUNA. Bitcoin is selling more than half the price it sells in 2021. Despite this, many still see the opportunity to make profit with the Satoshi-created-coin.
People all over the world sees the advantages digital currency have over the traditional forms of money. This makes it one to consider for the people, Money laundering, for example is less common than cash currency. As there has been a huge sense of distrust of the financial system, Bitcoin, which is decentralized therefore look like what to try out.
Many people want to trade Bitcoin as it is seen as a way of making quick money. The unstable price of crypto assets have made many to study its market in order to make a fortune. Even though it has witnessed many tumble over the years, it is still standing as the most valuable crypto asset.
In Africa where there are issues with the financial institution as well as poverty ravaging the land, people trade Bitcoin to gain financial freedom. The continent, for this reason have the largest population of P2P users in the globe.
Some really care about the decentralization of crypto such as BTC which helps to send/receive money without the notice of banks & other financial institutions.
People also focus on Bitcoin and other crypto assets because of its new uses of financial alternatives. These programs are called DeFi (decentralized finance).
Bitcoin & Other Cryptocurrencies in Harsh Times
Bitcoin and other cryptocurrencies are in difficult times as prices continues to tumble. The sudden collapse of Terra’s UST & LUNA can be attributed to the meltdown.
Critics have mentioned why Bitcoin and other digital assets alike are not worth considering. In fact, Microsoft co-founder, Bill Gates has stated that cryptocurrency is a Greater Fools’ Theory. The Celsius network is also undergoing liquidity crisis which has further put a dent on cryptocurrency.
BTC has 75% comedown from $69,000 highs in November 2021. Today, the price of BTC is more than three times its all-time high.
Ether, the second-largest cryptocurrency after Bitcoin, dropped by more than 80% to $880 lows during the ongoing bear cycle. Other top altcoins like Cardano, Solana, Polkadot, etc are not left out.
Simultaneously, the entire crypto market lost $2.25 trillion in the same period, hinting at large-scale demand destruction in the industry.
Will Bitcoin survive the Crypto Meltdown?
Bitcoin was launched in 2009 as a response to the 2008 global financial crisis. It introduced a new way to transact without depending on trust of third-parties, such as banks & other financial institutions.
Price volatility has been the biggest issue with cryptocurrencies and with the recent meltdown in the crypto space there has been questions raised about its future.
As for Bitcoin, experts believe it will bounce back. Bitcoin has tumbled severally and got back to its best. Some crypto enthusiasts who have predicted a bounce back for Bitcoin and have advised to buy the dip.
The current situations where it has reached its all-time low is a serious concern for the industry. This has actually demonstrated that crypto isn’t immune to a total meltdown.
Many of the so-called alternative cryptocurrencies, or “altcoins,” have dropped to their deaths this year. With some low-cap coins, in particular, logging over 99% price declines.
However, as for BTC, there is little evidence for total demise. It has had confrontation with six bear markets (based on its 20%-plus corrections) in the past, each leading to a rally above the previous record high.
Experts have stated that projects with healthy adoption rates and real users could come out on top in the wake of a potential global economic crisis.
Is it Safe to Invest in Cryptocurrency Today?
Yes, averse-risk takers are still trading cryptocurrencies and are investing. Bitcoin’s adoption rate is increasing with the addition of Central African Republic as one of the nations using BTC as a legal tender-the other being El Salvador.
If you are to invest in cryptocurrency amid this current meltdown, you are advised to put what you can afford to lose. Top crypto assets with more adoption rates and real users should also be considered more this time.
The Bottom Line
Bitcoin has survived harsh times in the past and has rallied to be better. The looming recession has raised many questions about the survival of BTC and other crypto assets.
Although small cap altcoins are already fading out as well as crypto platforms. Only time will tell what would be for the assets with healthy adoption rates and real users.
Also Read- Best App to Sell Bitcoin in 2022
If you want to sell your Bitcoin, Dogecoin, Litecoin or USDT today, Prestmit is the most reliable platform to do so in Nigeria and Ghana.
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