It’s been a rough ride recently for crypto traders.
As of this morning, 49 out the largest 50 cryptocurrencies by market cap were in the red over the past 24 hours, according to Coinmarketcap.com.
The No. 1 crypto, bitcoin, has dropped over 60% since its meteoric rise to $19,343 in mid-December.
As I write, the coin is sitting at $7,360.
Fast action, speculation and the dream of striking it rich spurred the herd into a buying frenzy three months ago.
But the hard reality of the volatile crypto market has turned many of those starry-eyed speculators into regretful ones.
And now it seems that every other day a new headline sends the crypto market into more of a tizzy.
U.S. Banks Clamp Down on Crypto Trading
Last week the majority of U.S. banks announced plans to cut off services to companies and individuals who work with crypto.
Details of each bank’s initiatives vary, but most announced plans to either shut down trader’s bank accounts, turn their off crypto-loaded debit cards, shut down merchant accounts or freeze associated assets.
Whether this is the root cause of crypto’s current continued downtrend is yet to reveal itself, but there is something big going on that points to more than just a “normal” market correction.
I reached out to Rich Jacobs, our newest resident crypto expert, to get his take. He told me this:
“Most of us in the crypto world would love to see widespread adoption of bitcoin and other crypto tokens. For that to happen, attracting large sums of money from institutional investors is a must.
Problem is the U.S. dollar, the euro and other fiat currencies have minimal volatility compared with crypto. They provide a safe harbor, or hedge, against massive fluctuations in the crypto market.”
It’s an excellent point with regard to the current state of uncertainty. The value of any coin is ultimately based on its utility.
Right now paper money is still more useful. Things are of course changing to the contrary, but the road forward is proving much rougher than expected right now.
Which is why I want to reiterate what I believe is your much safer but potentially even more lucrative option for playing the crypto craze.
The Blockchain Revolution
Two weeks ago I attended the World Crypto Economic Forum in San Francisco in order to dig deeper into the current state of blockchain tech and what’s on the horizon:
I can tell you, hands down, there are a ton of new ideas out there. The amount of startups with new applications for the blockchain technology is dizzying.
Blockchain tech, as we’ve previously covered, is already being used to streamline financial operations with a potential impact that could save companies billions.
But there are other applications too. Blockchain can be used in health care and education.
And let’s not forget that once the major exchange markets begin utilizing this tech, the entire world of investing could turn on its ear.
But a lesser-known application of blockchain tech is as a global property registry where you can buy and sell real estate anywhere in the world.
For example, perhaps you want to become a real estate investor but you don’t want to be tied down to one piece of property.
Blockchain could allow you to do what is called “fractional ownership.” You could own 10% of an apartment building in California and 5% of a duplex in Florida.
This totally changes the game in terms of monetizing the real estate market. And blockchain tech ensures that all transactions are recorded, verified and processed faster than ever.
There are billions of people in the world that could benefit from these types of applications because they would be able to extract real value from their real estate.
Of course, this is just one of many ideas out there.
But as more startups get ready to go public there will plenty of opportunities to capitalize on for big money.