January 2018 will be unforgettable in the history of cryptocurrencies as the wildest price crash yet was recorded within a space of the last 14 days of the month.
So, what led to the crash and what are the lessons that can be learned?
The Major Crash Drivers
The slew of reports that started with the South Korean government intervention in crypto trading in December 2018 continued with a crypto trading ban by the Indian government. The EU also mooted regulating the trade of cryptos, and all these sent the market into a tailspin.
The Hackers were Here
The activity of hackers came to the fore once again in the month of January with two reported cyber heists. First, it was NiceHash that lost $63 million worth of Bitcoins in its cryptocurrency marketplace hack.
Next, it was the NEM Foundation that lost an estimated $500milion worth of NEM tokens in a brazen heist that has become the biggest in crypto history.
The Facebook Ad Ban
In a move that further doused the enthusiasm of crypto investors, Facebook announced a ban on deceptive ads, which lured investors to part with their hard earned money for crypto gains.
On a weighted scale, the Facebook move was not out of place as several tale spinners swarmed the crypto scene in the last few months with many turning out to be spooks and crooks.
Good News for the Savvy Investor
Every trade has its pitfalls and crypto cannot be an exception. The stock market has witnessed several upheavals and crashes in history, but it is still waxing strong. When the hoopla and the euphoria of the wonder coins die down, only savvy investors will be left to reap the fortune.
Here is what I mean. The Blockchain is undoubtedly revolutionary and several innovations have emerged that cannot be disregarded. Payment systems have been disrupted across the globe with the likes of Ripple and Stellar leading the charge.
Money transfer operators and banking institutions have a chance to cut down on processing fees using the Blockchain opportunities provided by Ripple and its peers.
In the same vein, Litecoin expedites app processing times for Bitcoin linked transactions so that commercial users are not left in the lurch by the poor turnaround speed of the Bitcoin Blockchain.
In view of the utility of several cryptos, it is evident that they have a real-world application that cannot be overlooked. As the month of January came to a close, it was announced that the money transfer giant, MoneyGram, has entered into an agreement with Ripple. Stripe took on Stellar as a supported currency for transactions on its platform.
With respect to exchanges that facilitate Bitcoin trades, they have opened a new front for Bitcoin Cash as its Bitcoin Blockchain facilitates processing of Bitcoin with ease. There are talks of making Bitcoin Cash the default payment option in exchanges as a result of its fast processing times.
What Are the Opportunities that Lies Ahead?
The stock market crash has not dissuaded Warren Buffet from ditching the stock market, and for him, he sets in when others exit. How does this work? When people are hit by trepidation over falling prices, worthwhile stocks lose market value but their underlying strength is not eroded.
Cryptos come in different shades; the good, the bad, and the ugly. Out of the mix, there are several worthwhile picks that should interest you. Why a lot of the ICOs are fraught with risk, a couple of them provide a real pathway to the future.
In view of this, as a savvy investor, pick on cryptos and ICOs that come with an underlying value. If Bitcoin is falling so bad; look at Ripple, EOS, Stellar, IOTA, and a host of others that have a trajectory for sustenance. Buy, hold, and be patient for a new dawn.