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Ahmed Shah
I design "ideas" and a bit content as well
Asked a question 5 months ago

Crypto market seeing a negative trend on prices? is 2020 a bad year?

Where am I?

In Komodo Platform you can ask and answer questions and share your experience with others!

That's a good question.

In my opinion, it can turn out to be a best year for cryptocurrency by end of this year even if the current situation looks bad.

I am a developer, but have very much interest in trading, investment, economy, geopolitics, social behaviour, history etc. which helps understand many things related to the portfolio I manage for myself.
So, take this answer just as an opinion only.

The current market sell off in stock market, other asset classes such as Gold/Silver/Bitcoin/Cryptocurrencies etc. is a result of direct and indirect result of economic slow down due to COVID-19, Quantitative Easing, and many bad practices keeping the bull market running for so long than it's usual cycle by major economies in the world.

This has been already coming for very long already, but to my opinion COVID-19 has boosted it's speed a lot in progression towards recession, which I read at many places on internet could possibly turn to Global Economic Depression soon after global recession.

The chats I read in KMD discord which are very informative at many times, and other articles I read online indicates that this sell off will last until the investors has enough liquid money in their portfolio to feel insured it's good to survive the coming recession. And soon after this sell off slows down, and market turns the other side, it will go All Time High in asset classes such as Gold/Silver/Cryptocurrencies.

I don't know exactly how accurate these thoughts are, but seems to make sense to me enough to believe this looks like the possible reason of current market down in cryptocurrencies. It is not just in Bitcoin, but reflecting everywhere else too.

COVID-19, Oil Prices Wars, Quantitative Easing, Economic shutdown, Ginormous debts in various asset classes, overly inflated bull market cycle ready to pop anytime this year, this all doesn't really look anything good for any nation, any traditional asset class, except for Gold, Silver and Cryptocurrencies.

I believe, it is just my speculations that the 3 asset classes I mentioned will start turning bull sometime around July, 2020 - September, 2020. And as people have been speculating $100,000 USD worth Bitcoin will actually become reality this year, hopefully even going higher, we never know.

And when the Top market cap currencies starts to go up, what happens to the lower cap cryptocurrencies? They starts to move its value to higher market cap currencies. The times Bitcoin will go higher in value and will accumulate even more market cap dominance in such scenarios, it won't be surprise to see the lower cap values showing red in value.

But, keep an eye on the Bitcoin dominance, if it goes up and down around 40% or lower, it probably is good time to move value from alternative cryptocurrencies at that time to re-adjust the portfolio.

In such times, it doesn't really matter which cryptocurrencies are actually stronger in technical terms, which ones are bad. Almost all of them will show their value increase gradually as the money flow moves from top market cap valued cryptocurrencies to the lower cap cryptocurrencies.

But, in long term, where the global political powers are struggling to keep up with the stability of their economy, they will for sure ease their rules around cryptocurrencies, which very much likely to open doors for not just private companies to issue and start using their own hybrid versions of cryptocurrencies with various levels of centralisations in their protocols. But, this open opportunities will also help open public blockchains to gain a foot in world, and score some actual real world projects and use cases which will gain user base in billions.

This will happen with any and all cryptocurrencies who's core blockchain technology is ready to handle all the necessary extremes of monetary value architecture to replace the current system which is centralised.

Scalability, Security, Governance, Flexibility to adopt and adjust to the demand and usage load of the technology, Being able to create smart and scalable applications with minimal technical skills, yet powerful peer to peer applications, which connects both the external world data and the value system across the cryptocurrency sphere and not just the core technology provider will quite quickly start to get adoption.

In any case if such scenario happens, and if KMD becomes even 1% of such adoption out of all the cryptocurrencies market which at that time I'd estimate would be multiple N numbers of trillions of dollars value (actually at that time dollars will not be useful to quantify value at all), it'd be superb for KMD. It has all the qualities already and improving a lot every day and month in its capabilities to the most ideal candidate for entrepreneurs to adopt it's technology and quickly make scalable, smart decentralised applications.

And coming recession will for sure lead many bright minds to Komodo, which will lead to greater adoption increasing the network value of Komodo. It will not only affect just the Komodo, but to my opinion, all the cryptocurrencies within this Komodo Platform network built using this technology.

Hoping for the greatest years ahead.

Just my few satoshies.

Just adjusting to the stock market.

I am currently buying in stages