Déjà vu with Bitcoin & Co: Is a new crypto winter imminent?

Hello, dear readers,

I admit: I also invested a little “play money” in cryptocurrencies. But luckily so little that the current crash does not really hurt. Presumably, many investors could not resist the attraction of supposedly fast money in the last few months and years and bought Bitcoin, Ethereum, Ripple, Dogecoin or another of the now more than 10,000 digital currencies. But their sharp fall in prices should once again teach high-risk “gamblers” a lesson …

Bitcoin: The crash follows the euphoria

Anyone who has hit the optimal time to buy and sell during the two major “crypto boom phases” of 2018 and 2021 can now consider themselves rich and lucky. But speculators who were not so good at time have sometimes lost a lot of money or, at worst, even their house and home. Since the beginning of the year, Bitcoin alone has fallen by about 56 percent – from over $ 47,000 to just about $ 20,000 per share. coin. Anyone who bought Bitcoin at the highest level of almost $ 69,000 in November 2021 would now have to realize even greater losses in the worst case.

Before the crash, fans still hailed cryptocurrencies as an “alternative to gold.” As a safe haven when other forms of investment yield losses. But the equation did not work in the current crisis: in light of the dangers of inflation and interest rates, investors shy away from all risky investments and withdraw from the cryptocurrency sector. Bitcoin and other digital currencies have traditionally been subject to sharp fluctuations, but very few speculators expected price losses of this magnitude.

Crypto fans can now argue that in the current market environment, stocks also lose value, sometimes massively. Unlike Bitcoin & Co. however, corporate shares are real assets that are based on patents, trademarks, production sites and working capital and therefore have an inherent value.

Shitcoins Vs. Blockchain options

So-called “Shitcoins” even completely lack this: Fun currencies (Meme Coins) even go a step further than Bitcoin or Ether – they are only created for speculation. Shitcoin gamblers now face total losses, as data from the CoinMarketCap portal shows: The five “Shitcoins” with a loss of over 97% each in the last month (as of June 20, 2022) were cryptocurrencies with the imaginative names Verlux , Green Satoshi Token, MoonRaise, SUPE and Saitana. Whatever may be behind it – it’s not worth a penny more.

Despite the mentioned negative examples, cryptocurrencies and blockchain should not be lumped together. For while individual cyber currencies are actually associated with enormous risks, their technology, the blockchain, also offers opportunities as a development platform. Be it in smart contracts, which can simplify and accelerate business processes, or in the form of non-fungible tokens (NFT), whose unique can also be used for e.g. identification purposes.

But while the brave new blockchain world is still in its infancy, investors should focus on “true values”. (boerse.de) Gold or (Champions) shares is and will remain without alternative stocks of value and has for decades proved that any crisis can be made up for. Also in the future, the stock market should continue its long-term upward trend – which is still very much an issue with cryptocurrencies …

I wish you a relaxed and successful trading day,
Your miss boerse.de

PS: Why tangible assets such as boerse.de gold, Champions shares and Champions funds are indispensable for the accumulation of wealth and asset protection, especially in times of constantly rising inflation rates, read for free and without obligation in “Guide to your wealth“.

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