All cryptocurrencies are going through a very volatile phase right now. It is safe to say the bear market has been in full effect for quite some time now. Some experts claim this negative pressure will automatically result in a bigger focus on blockchain technology. That seems a bit premature, as this bear market will not last indefinitely either.
The Cryptocurrency Bear Market Problem
Everyone will agree 2018 has not been a great year for cryptocurrencies so far. All top digital currencies have lost 40% of their value or more. Lower-cap currencies have seen similar trends, bar some pump-and-dumps. With no real relief in sight, there is a lot of despair in the market right now. Investors are growing impatient, even though they know things will have to improve eventually.
Wall Street moguls are entering the cryptocurrency space as we speak. Merchant adoption of BTC is also on the rise, which is pretty interesting. Bitcoin will get some major technical upgrades in the not-so-distant future as well. All of these factors combine for a positive outlook regardless of how dire things may look right now.
Even so, some experts continue to predict this bear market will not slow down. They expect things to get a lot more difficult in the coming weeks and months. After the crazy run of all cryptocurrencies in 2017, such statements are not entirely unexpected. It is still way too early to determine whether or not the bear market will carry on for much longer, though.
Blockchain Hype Cycle Renews
As one would expect, the cryptocurrency bear market results in even more blockchain hype. Some experts are convinced it is all about the technology and not cryptocurrencies. Mark Karpeles recently echoed similar statements, as he is no longer a Bitcoin believer at this stage. Not entirely unexpected, although it couldn’t come at a more troublesome time for cryptocurrencies.
One also has to keep in mind blockchain developments are mainly fueled by speculation. Companies develop proofs of concept where they determine if the idea of a blockchain is even viable. In most cases, that may not be the end result. Not every idea needs a blockchain to succeed. There’s also the issue of companies pivoting to a DLT model to simply boost stock prices.
It is unclear what the year 2018 will bring for both industries. Cryptocurrency isn’t in the best of places, but it will bounce back eventually. For blockchain, there is still a lot left to prove in the end. Previous years have shown a cryptocurrency bear market is to be expected. Every single time, Bitcoin and other top currencies come out stronger. There is no reason to believe this year will be any different.