How do we stand?
Cryptocurrencies are digital “units” that use cryptography as their base for security, crypto currencies run on decentralized networks (some), and are able to be used for payments in many retail businesses. Cryptocurrencies are also used as a medium of exchange at certain exchanges.
Like any asset (e.g.: gold, houses, diamonds), a crypto currencies' value is determined by their supply/demand. Since there is a controlled supply, and because recently more people have been rather selling than buying, the price has dropped considerately. It is very easy to loos track when you read all those pages about the importance of Crypto in the development of finance or else. Due to crypto currencies character build by grass root web designer, programmers in short IT connected people it is no wonder that Cryptos are prominent in the word wide web or in Social media. So lets have a look into their Market cap.
Crypto Currencies Market cap:
Beginning of December the evaluation of the cryptocurrency market capitalization was around $135 billion. The cryptocurrency market cap as a whole has also gone up quite spectacularly till 2017 establishing itself above the US$300 billion mark. Remember beginning of 2018, the total cryptocurrency market cap was just US$18 billion.
Stock market losses in en of 2018:
In Januar 26 the S&P 500 index peaked, since then the market has lost more than $3 trillion in total value. To put that in perspective, money exchanged owners for around $500 billion in stock market wealth in 1987’s Black Monday market crash. Adjusted to inflation, it was around $1.1 trillion in today’s dollars.
Reality tells us:
That the loss of the S&P index is only one of many indexes, losses, well ownership exchanges are more exact are much higher. For the sake of the argument just leave it at 3 Trillion US$, compared to a marketcap in crypto of 135 Billion$ should makea reality check easy.
it also implies that when the stock market crashes not many people will flock to Crypto as often repeated by many crypto enthusiasts. They will most likely go into Gold, Real Estate, Esmeralds etc. Care to return home? Click here to return to index.
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