Ethereum founder Vitalik Buterin is known for his quietness in regard to cryptocurrency prices. Recently though, he released a tweet directly against Tim Swanson, known cryptocurrency hater.
SimilarWeb also came in on the Tweet, talking about the price spike in December of January of last year – and that the currency simply returned to its normal stabilized price level.
According to the numbers found on SimilarWeb, visits to Coinbase had gone down about 50%. Vitalik wasn't surprised, because we're at the tail end of a bad trend. And when it comes to the Ethereum’s founder, the guy has always been on point with cryptocurrency prices. He's definitely not worried, which makes sense, considering the total value of all cryptocurrency on the planet is around half a trillion dollars or 500 billion. Vitalik recently sold 30,000 of his own Ether, shortly following a drop-in Ethereum prices.
No one knows for sure why he did this or if he will reinvest with the company. It’s impossible to legally see where anyone’s fiat money is going. As for other people, they got kind of burned out on cryptocurrency after the rise and fall of Bitcoins $20,000 a token back down to normal high subsided. Several people are now at an all-time low in their enthusiasm for cryptocurrency in general. Still, there are plenty of new investors in the market including governments and major financial institutions, so cryptocurrency isn't going anywhere anytime soon.
Price waves are normal, crypto investments included. As people see spikes in prices they tend to think the high is the normal price, not realizing it's simply just the crest of a wave. Then, when the prices return to normal with a drop, they think it’s a slump, but it’s just the price returning to normal.
There's nothing to be afraid of in terms of cryptocurrency, all of them have gone through ups and downs since the beginning. Price changes especially tend to happen when major holders of currencies dump large of sums tokens in one move. Price changes also occur when entire systems or platforms shutdown, like what happened with the Silk Road. Other issues include fraud like the downfall of Mt. Gox. Or people simply make mistakes. There are several reasons why the value of cryptocurrencies jumps up or down.
Each cryptocurrency has its own time frame for price changes some longer than others at different times a year. All go through waves, hopefully the lows being higher each time with the highs being higher each time as well. For example, Litecoin, Dash, and Ripple all have different phase times for price changes, and coins like Bitcoin and Ethereum changes better than others. Therefore, you don't see a lot of the major cryptocurrency investors and players panicking when price drops occur, because it's typically just the price returning to normal after highs which have happened in the previous six months.
Not all problems are really problems either, for the industry as a whole at least. Even the fall of Mt. Gox, which hit hundreds of thousands of people hard, was necessary. Fraudulent actions tend to happen then transform the industry and move it forward. They help create new unseen technologies, like all the new smart contracts which have been unveiled in recent years.
As for prices for cryptocurrencies, many believe that Bitcoin will likely double or triple in price before the end of the year, and the same is possible for several other currencies like the Stellar Lumens or ZCash. The main thing holding these tokens back is regulations and fraud, which are both being dealt with on a global scale.
What do you think? Where's the price of cryptocurrencies going for the rest of 2018? Leave your thoughts in the comment section below.