After the boom of 2017 Bitcoin crashed back down to earth with an almighty wallop.
Yet the lows of $3,000 were still a lot higher than the dips which had gone before. Since then, Bitcoin has crept slowly but surely up to the $9,000 mark with a few choppy moments along the way.
All the while, mainstream news has struggled to find its appetite for crypto sufficiently whetted – apart from when Libra and Facebook made their big announcement.
So has the crypto winter been harsh enough to weed out the unnecessary projects that fill this industry?
If it has not, then the question on many lips becomes: ‘If we see another price rise akin to 2017, will the altcoins follow and will this be a positive or negative?’
Even though the crypto winter has been harsh on many altcoins, they are not dead. Discussion has since turned to how a dramatic rise in the Bitcoin price would affect altcoins. Would they rise in union or will Bitcoin finally separate and prove itself as the only viable cryptocurrency.
During 2017 numerous criminal cryptocurrency scams and also many that flirted with providing very little product but managed to rake in huge profits by riding the coattails of Bitcoin. Since then many of those projects’ leaders have walked off into the sunset with a healthy pocket.
This debate predictably occurs between the Bitcoin maximalists and altcoiners. Whilst neither group are capable of predicting the future, it is difficult to ascertain that from their tweets such is their certainty and confidence.
One of the main issues that arises with all cryptocurrencies boosting substantially in value over time is that mainstream media begins to pay interest once again. Under substantial scrutiny many of these projects then become clearly unfeasible. This in turn brings valid questions as to the value and importance of the industry as a whole.
When the price inevitably crashes, the criticism from mainstream media becomes vindicated, and the cycle repeats itself.
The cryptocurrency markets certainly have no need for more than 5,000 distinct cryptocurrencies. Even the most passionate of altcoin believers would find it hard to disagree. Yet as they continue to cling on to life despite a massive crash in price it appears that the crypto winter has not killed them off yet.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.