The sudden drop in cryptocurrency prices shook the markets. There is plenty of FUD (fear, uncertainty, doubt) around during these last few days.
The end of Bitcoin was proclaimed for the thousandth time and the overall mood is rather dark.
But among all of those fear-fuelled opinions, there are also rational ones. Lance Morginn CEO of a Canadian company the Blockchain Intelligence Group (BIG), expressed that the latest price drop has to do with investors’ “lack of education”.
Morginn expressed that the number of entry-level investors who hopped onto the crypto train in 2017 had a lot to do with the current state of affairs. And if we add a lack of proper regulations and sprinkle it with basic supply and demand rules – we have a ready recipe for today’s market.
Speaking with a GBC AG Bank’s representative, Morginn explained:
“You couple all these factors together, along with the lack of understanding that the average individual has of the sector, and that’s the reason the pricing of crypto and where it’s at today,”
The idea that investing noobies entered the market during a bull run of 2017 and ultimately influenced it – is a popular one recently. According to this narrative – if the prices drop low enough it will only leave hodlers in the game.
“The good news for BIG, however, is that as long as crypto has a form of value and the criminal element could be using it as a mechanism of payment, our services are more than necessary to our clients, so this decline does not impact us in a long run,”
“The fundamentals of the industry are still intact.” – Morginn added.
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