It’s been a rough few weeks for crypto, asprices have declined significantly. However, the last 24-hours have beenparticularly painful for crypto investors. The market has touched new lowswithin a very few hours, with Bitcoin (BTC) hitting lows of $3200 on someexchanges.
Even Nano (Nano), which hasheld above $1 all through has finally breached this support, and is now tradingat around $0.80. This is a signal that the bears are totally in control of thismarket. So, is this the end? Is it time to flee? While this may sound counterintuitive, thisis probably a good time for long-term investors to be taking an interest in themarket for the following reasons.
First, nothing goes down forever,unless it is completely worthless, and simply disappears. Crypto is definitely notworthless. Prove to this is in the increased adoption levels of different cryptocurrenciesboth at the retail and institutional levels. If it was worthless, worldrenowned institutions would not be taking an interest in it.
On this foundation,it is safe to postulate that cryptocurrencies will rebound at some point. In 2008 when the stock markets were goingdown and major corporations’ were going bankrupt, it looked like the world wascoming to an end. However, for savvy investors like Warren Buffet, this was thetime to go shopping for valuable companies that were selling at discountprices. Ten years later, the stock markets have hit new highs, with some companieslike Apple and Amazon hitting trillion dollar valuations. Today, crypto is in asimilar situation.
It looks like the roof if falling for cryptocurrencies. However,with the high potential that cryptocurrencies have, they will bounce back, probablybigger than ever before. It only takes an understanding of the bigger pictureto figure this out. The IMF chief recently asked central banks to look intoissuing digital currencies. This goes to show that the future of payments isdigital, and that’s a source of value growth in the future.
But one may argue that notall digital currencies will survive. This may be true, but there is a high probability that Nano (Nano) willbe among those that survive. What gives Nano (Nano) a good chance of survivalis its practicality as a currency. Nano is instant, secure, and best of all ithas zero transaction costs. These are attributes that make it perfect for useas a currency.
These are attributes thatnot only make it perfect to use as a currency but also more competitive thanmost other cryptocurrencies in the market. This means that it stands a goodchance of being among the coins that will survive in a crypto apocalypse. Besides, the fact that it has a fixed supplymakes it a good store of value. This is a core attribute of money, and by extensiona key source of long-term value growth for Nano (Nano). The world is may looklike it’s coming to an end for crypto, but it is actually an opportunity toaccumulate.