Can the Crypto Market Ever Recover?

 After the January 2017 crash, people are wondering what the future holds for crypto.  Can the crypto market ever recover?

Can the Crypto Market Ever Recover?
The crypto market was at a fever pitch in November of 2017. Everyone was talking bitcoin, asking which alt-coin would be after the boom, and swearing they'd keep their bitcoins until the day they died.

It was a wonderful time when everyone was able to feel confident in bitcoin and crypto. Bitcoin was going up, up, up… until it crashed in one of the most disastrous months ever for bitcoin.

Almost overnight, the price of bitcoin rose from $20,000 per coin to a total trading value of $7,000 in January. The value of bitcoin fell by more than a third. Because of this, people are concerned about whether it will ever be the massive investment vehicle it once was.

Can the crypto market ever recover? Let's take a look at the facts.

There have been at least three other crypto crashes that have seen equally catastrophic losses in Bitcoin's earlier times. At one point, the price of bitcoin dropped from $32 to a mere $2. Clearly, it's recovered with a little something extra.

Although past performance is not a complete guarantee of future results, it is a good sign. If it can surpass the major crashes in 2012, 2013 and 2014, there's a good chance it will recover from the one in 2018. When bitcoin crashes, everything else crashes too.

From this perspective, it is not about asking, "Can the crypto market ever recover?" It is a question of when this will happen.

Wait! not so fast!

Many people are very skeptical when asked about the cryptocurrency market, and it is true. The crash was very different from January 2018, simply because of the scale of the investors affected by it.

The crypto market exploded, and everyone was interested in buying cryptocurrency as part of their portfolio. This also included people who were not invested in technology as part of the crowdfunding.

The scale, as well as the types of investors, are very different. Therefore, the past may not always be a good indicator of existence.

When the big crash happened, a lot of casual investors got burned. Some were even caught on a large scale in Mt. If you want to invest then you need to know about Gox Scandal, one of the biggest cryptocurrency scandals.

Amidst the bitcoin theft and crash, many people took to social media to stop others from investing in bitcoin. We would be lying if we didn't say that it didn't cause others to pull out of the investment.

At least, the fuel for the fire of bitcoin has been canceled out. People are no longer as enthusiastic as before.

It also doesn't help that many traditional investment gurus hate crypto.

Do you like Warren Buffett's intellectual advice? Do you enjoy reading about quality stocks? Almost anyone who is a big time value investor will advise you against cryptocurrency – and rightly so. This value does not coincide with the investment strategy.

Buffett himself warned against crypto because it technically has no value except what people call it. He called it "rat poison, squared!" Said too.

The ICO scam that tackled the crypto market after the bitcoin crash didn't help either.

The ICO scam that tackled the crypto market after the bitcoin crash didn't help either.

The crypto market is also suffering from a great deal of bad press for initial coin offerings. More specifically, it seems that the once credible ICO market is full of scams.

Many worthless ICOs that proved to be scams can be listed by casual investors, as they continue to make news headlines. It's bad, and it looks bad.

Sadly, about 80 percent of all ICOs this year will be scams. That number continues to climb, and it is putting a serious dent in people's trust in crypto.

There have been many cryptocurrencies that have been proven to be fraudulent. Several currencies, including those that seem completely legitimate, have been used to raise funds for scam artists who would disappear after taking in a million dollars or more.

The demographics of investors began to change.

In the early stages, the crypto market was a highly niche investment platform consisting of only a select few. It was a space that was completely removed for STEM workers, hackers, and the occasional criminal.

Now, people from all walks of life are using it. It's no longer a niche, and while it may seem like a good thing at first, it's not always a good one. If the mainstream stops this, the cryptocurrency is more likely to be stuck at the lowest price.

For some, it begs the question, "Should the crypto market ever recover?"

For some, it begs the question, "Should the crypto market ever recover?"

The crypto market certainly has its problems. It has been linked to the sale of banned materials, drugs and weapons. It has been used as a form of money laundering. There have been countless scams, thefts and hacks through cryptocurrency exchanges.

At one point or another, many investors are starting to grow weary of what they are seeing. Some people are starting to wonder whether it is foolish to invest in crypto.

So far, it's a slow bleeding.

It's been over half a year since the last crash, and the price of bitcoin hasn't really recovered to pre-crash levels yet. In fact, it has been volatile while still declining steadily like months ago.

If the crypto market can recover, it will take some time. And, for that to happen it will require a lot of positive public relations.

The good news is that all is not lost.

The good news is that all is not lost.

The crypto community is still as tight-lipped as ever, and there has been a lot of movement to make crypto safer, more user-friendly, and more heavily regulated. Should the community get better about hacking and evolve to become really better, it is quite possible that we will see a crypto renaissance.

Furthermore, there are now many defenders in the crypto community who want to see bitcoin and other crypto succeed.

It is important to remember that it is no longer just people involved in crypto – and this may be the saving grace of crypto.

Unlike sometime in the past, crypto isn't really just a "person" industry anymore. Several major corporations, including Squarespace, Overstock, Microsoft and Merrill Lynch, have started investing in bitcoin and blockchain technology.

Can the crypto market ever recover with the help of major corporations? Probably, thanks to the resources they provide.

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