Is This The End Of Cryptocurrency?

Sep. 17, 2018 6:20 PM ETBitcoin USD (BTC-USD)ETH-USD24 Comments
Erich Reimer profile picture
Erich Reimer
3.45K Followers

Summary

  • Cryptos have seemingly hit bottom as nearly all market demand seems to have been sucked out of the asset, causing many cryptos to hit historic lows.
  • I believe, for the first time since covering cryptos, that the cryptocurrency market may be nearing a bottom.
  • Even as the market price of Bitcoin and other cryptos is collapsing, the actual regulatory, business, and technological infrastructure surrounding the asset are booming as never before.
  • Though Bitcoin has declined significantly, its market share has actually increased as certain high-quality cryptos like Ethereum have declined precipitously.
  • I believe crypto's future is in one that sees Bitcoin's market share decline and Ethereum grow, with that trend having reversed in recent months, a sign that crypto's shrinkage may be stretched out.
  • Looking for more? I update all of my investing ideas and strategies to members of Tech Investment Insights. Get started today »

Any "true believers" in Bitcoin (BTC-USD) and other cryptocurrencies the past few months have seen their faith challenged, as consistently positive institutional and regulatory news has been balanced with steady declines in cryptocurrencies across the board. The total market capitalization of all cryptocurrencies now stands at roughly $204 billion, a level last seen in the first few days of November 2017.

Yet, among cryptocurrencies, it appears that Bitcoin, despite having hovered around the $6,000 range for the past few months, has actually been the safe harbor as other cryptos - including the much-hyped Ethereum (ETH-USD) - have seen far greater declines.

All this leaves one wondering if this is the new, stagnant future for cryptocurrency or whether a rebound may someday soon come. I remain optimistic to a degree on the cryptocurrency sector as a whole and for a few particular cryptocurrencies that I believe have found worthwhile niches.

It seems like the technology and institutional infrastructure is bit-by-bit being built out to be sufficient for longer-term stability as a technology and investment product. In the next year or so, I think well-positioned cryptos will experience a rebound, even if at the moment, it seems they are bottoming out with no one wanting to touch them.

Yet, as they say, it is darkest before the dawn.

Cryptocurrency Looks Like a Mangled Mess Right Now

Cryptocurrencies are all looking quite wounded at the moment. At $6,570, Bitcoin is but 33% of its almost $20,000 levels last December. Non-Bitcoin cryptos have fared even worse, as their total market capitalization stands at just $90.5 billion or roughly 16% of their high of $544 billion in early January 2018.

(Source: CoinMarketCap)

(Source: CoinMarketCap)

Amid this, Bitcoin's market share has increased dramatically again in a reversal of its prior decline amid the rise in market shares

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This article was written by

Erich Reimer profile picture
3.45K Followers
I primarily write on cryptocurrencies and other frontier technology topics. I hosted "Tech Investment Insights" here at Seeking Alpha, exploring emerging technologies with some of the world's most innovative corporate leaders and entrepreneurs. My professional background is in public policy, financial regulation, and the business side of the technology sector. I'm a licensed lawyer in the District of Columbia and the State of New York. I earned my Bachelor's degree from the University of Pennsylvania, to include training at Wharton, and my law degree from the University of Virginia.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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