Who Are The Crypto Speculators - Not Investors?
Virtual money or real money are essentially things that are recognized by people as valuable. However, for real money, this recognition process is conducted by the state. Currency is a tool for socio-economic management. Therefore, maintaining the stability of the currency is an important task.
As for cryptocurrency, this recognition process is conducted by "a group of users" - an entity that literally has no power over each member. In addition, for this entity, the more expensive the virtual currency, the more beneficial it is for the majority of its members, because in the end, they still want to exchange for real money to make a profit.
Therefore, although the nature is similar, the operation of these two currencies is very different. Real money has governing monetary policies. And the "virtual currency user group" has no tools to save its value but exhortation and belief. When the currency fell, they stepped on each other again, to sell off, trust then was not worth three cents.
If compared with gold, it can be seen that in addition to being used as a currency, there are countless other practical applications such as jewelry, industry, and medicine. Meanwhile, what use is virtual money other than speculation? Of course, you can't use it as currency, because no one dares to buy Bitcoin when the price changes every minute.
I am not against the speculators of virtual currencies, nor the story with the mutant orchid before, as long as you know what you are doing and are willing to take all the risks that have been warned from the beginning. I only vehemently condemn those who claim to be experts in virtual currency or blockchain, and constantly post forums to entice people with no knowledge to invest in this channel with enchanting words like "buying virtual currency is investing in the future". future".
In fact, blockchain is being turned into a "buzzword" for excessive PR. All that this technology is contributing to humanity are just tools to "seduce chickens" for speculation. Those things, can now be processed by available technologies with many times higher performance than blockchain.
The leading cryptocurrency suddenly “free fall”
The top 10 cryptocurrencies – including Stablecoins, Bitcoin, Ethereum, BNB, XRP, Solana or Cardano – have been in free fall, losing their value miserably within the past few days.
The domino effect affects even "stable cryptocurrencies" like Stablecoins, Bitcoin or Ethereum.
Stablecoin Luna free-falled from $118 to $0.09 over the course of a month. This drop is unusual, out of control and unpredictable. Some experts warn that the "ripple" effect is just beginning while others try to calm the market.
Unstable cryptocurrencies such as Bitcoin and Ethereum, are known to drop easily. But this crypto crisis is special, as it seems to be driven by an unusual factor: the collapse of stablecoins.
Stablecoin works on Blockchain technology, it is gaining attention in recent years due to its flexibility, speed and fixed value. It is usually set at around 1 USD per token. Called "digital USD", they have become popular assets for many people and financial institutions around the world.
The collapse of stablecoin Luna created a panic and made it difficult for the public perception and belief in the idea of the stablecoin concept. Tether, USDT - the largest stablecoin on the market - lost 5% of its value, dropping from 1 USD to 95 cents.
Nicholas Bonnet, an Aplo crypto broker, told CNBC that traders are exploiting Tether’s drop “basically buying the token for less than $1 and then exchanging it for a dollar.”
Tether chief technology officer Paolo Ardoino has been trying to reassure the market, ensuring all Tether holders will always receive $1 in tokens when they withdraw them, according to CNBC. He added 300 million Tether tokens were withdrawn in the last 24 hours. The price of other stable coins like DAI or USDC, remains at 1 USD.
Cryptocurrency analyst Yuya Hasegawa believes that the price of Bitcoin could still continue to fall due to the "worsening UST [Tether] and technical sentiment". FX Street again stated that Bitcoin @TheRealPlanC and @decodejar have fallen to the floor price and are on the way to recovery.
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