Investors around the world haven’t lost faith on Ethereum ETH, pumping more money into R&D
Ethereum ETH is the mother of all modern cryptocurrencies. Investors and crypto enthusiasts backed up the idea from the very beginning. Unfortunately for Ethereum ETH this was not enough and lost since December 2017 over $1000 in value.
The drop Ethereum ETH and other cryptocurrencies were expected since many investors decided to cash out. Beginner investors and crypto enthusiasts purchased Ethereum ETH and other coins when the price was very high. A common mistake among beginner traders and investors. The first rule of trading is SELL HIGH and BUY LOW to maximize your profit. Slowly investors and traders start selling their Ethereum ETH and other coins because they agreed this is a bubble.
Stepping away from their initial believe and support towards Ethereum ETH, more and more all cryptocurrencies suffer a drop. The main concern for Ethereum ETH and other cryptocurrencies was regulation and EFTs.
From the begging, we all wanted decentralized payment methods and fast peer to peer money transfers.
Ethereum ETH delivered a decentralized platform allowing the creation of many other cryptocurrencies. Let’s wrap our head around Ethereum ETH for a moment, it delivered what it was designed to do but yet its value dropped. Ethereum ETH and all cryptocurrencies dropped in value because of three major reasons.
First and foremost, there are investors who stop believing in Ethereum ETH and other cryptocurrencies
Investors and traders with experience understand the implication and risks when it comes down to any form of investment. On the other hand, we have the crowd that is rushing to buy into Ethereum ETH and other cryptocurrencies.
The second group have no idea how to trade or invest but still want to get involved, purchasing Ethereum ETH and other cryptocurrencies. The small drop in value scares beginners and push them to make irrational decisions selling out of fear Ethereum ETH and other cryptocurrencies. These group of investors lacks the knowledge regarding Ethereum ETH and its implications for blockchain.
Beside the plain definition of digital currency or asset, they decided to invest in Ethereum ETH because everyone else is doing it. My question is how can you invest in something you don’t understand and expect to be profitable? This effect was called “FOMO” Fear of Missing Out.
The second reason of ETH and other cryptocurrencies losing investors and value is banks and governments
You can agree with me on where this is going by approaching such statements. Ethereum ETH and all cryptocurrencies are suffering because of banks and governments. Central banks are making efforts on dismissing Ethereum and other cryptocurrencies as a real form of payment or transaction.
Some banks in the US, Europe, and Asia took drastic measures for banning Ethereum and other cryptocurrencies. They even suspended bank accounts because of the where involved in cryptocurrency trading and exchange.
False or True
However, not all banks have similar behavior. Sweden, Germany and UK banks decided to embrace the change and even adopt blockchain technology. Special accounts where created for bank clients that deal with Ethereum and other cryptocurrencies. From governments point of you, the main concern was the funding terrorist activities. But that’s not the only reason. Governments decided to tax cryptocurrencies and Ethereum imposing regulations.
Since it was too late to stop the development of new cryptocurrencies and Ethereum ETH, they came up with regulations and EFT approvals. Opinions were shared even on a governmental scale since some magnates recognized the value of using Ethereum ETH and cryptocurrencies.
Finally, the third reason is scams and hacks, which by the way scared allot of investors
There is no mystery, scams and hacks are the “Dark Side” of any potential source of profits. Since the introduction of mobile prepaid and bonus cards, scammers and hackers started to take advantage of any vulnerability of its victims.
Probably you read on newspapers or any other mass media source cases of a credit card stolen details. Hacks of personal devices happen after users visit dubious websites when purchasing Ethereum ETH or other cryptocurrencies. The fault can be two-sided but in 80% of the cases, the user was at fault. Having a week firewall and no antivirus their wallets were vulnerable to any hacking attempt.
Other users were scammed when purchasing Ethereum ETC and other cryptocurrencies from Pump and Dumps or Ponzi schemes. Nothing new here.
Together we will conclude that Ethereum ETH is here to stay despite all drawbacks
If you believe in the future, then support Ethereum ETH and your favorite cryptocurrencies. Always think about the future and what we accomplished in the past 10 years. Think about what we can accomplish in the next 10 years by using Ethereum ETH and other cryptocurrencies.
Ethereum ETH will only reach a price of $1,500 this year if old and new crypto enthusiasts will back up the technology. Moreover, trading cryptocurrencies will increase the daily volume pushing its price even higher.
Let me know in the comments below what are your thoughts regarding Ethereum or any other cryptocurrency. We will happily include in our articles your idea or point of view.
Like always I wish you all Happy Trading and Every Success!