Ten years have passed since Bitcoin was first introduced to the world. Numerous technical advancements have been achieved during that decade. At the same time, some things have not changed in the slightest. The cryptocurrency industry can easily succeed without some of the current trends and potential future projects people tend to get overly excited about. Gaining mainstream traction is about much more than institutional investors.
End the FOMO
Although the FOMO – or Fear of Missing Out – aspect of cryptocurrency has been highlighted on numerous occasions. Everyone is chasing pump-and-dump cycles these days in an effort to make money. Given the bearish year Bitcoin and other currencies, tokens, and assets have gone through in 2018, it is only normal users lose track of the bigger picture. Unfortunately, this current FOMO cycle will only ensure there will not be any sustainable growth in this industry for the foreseeable future.
One side effect of FOMO is how it creates a vicious circle. Users buy currencies at a low price, wait for new speculators to come in and dump their coins on those investors for quick profits. Those new buyers – who chase the rising price due to FOMO – are then disappointed as the price drops pretty quickly and try to cash out to negate most losses. No growth can be sustained when FOMO is the main market sentiment at any given time. It also ensures people are less keen on spreading the word about what cryptocurrencies stand for, as all they care about is quick profits.
Shilling, be Gone
The years 2017 and 2018 have been very interesting for the cryptocurrency industry in many different ways. One peculiar trend is the [paid] shilling which has taken center stage on social media, Reddit, forums, and so forth. Although there is nothing wrong with promoted and sponsored content, the lack of transparency regarding such “messages’ is another aspect holding cryptocurrency adoption back. This became especially obvious during the heydays of the ICO industry, when most projects wanted to get validated by industry “experts”. Less shilling will create a more versatile and valuable industry for all parties.
Does Anyone Need an ETF?
Throughout the past few years, there have been numerous debates regarding potential Bitcoin ETFs. These investment vehicles would give institutional traders exposure to Bitcoin in a convenient manner. At the same time, an ETF will not help overall Bitcoin or altcoin growth, as it will only lead to even more price speculation. Cryptocurrencies need to find use cases in the real world and not remain stuck in the speculative / financial sector for eternity. For those who want to see cryptocurrencies succeed – and not just make them money – an ETF is perhaps the lowest priority on the list right now.
Pump Signals / Lazy Traders
If there is one particularly disturbing cryptocurrency trend on social media these days, it is the growing number of “price signals” and “pump” groups trying to get some attention. No one in their right mind should ever pay money to receive any signals of this kind, as it is information one can easily obtain on their own with some minor effort. It doesn’t take long to learn the basics about cryptocurrency trading and price charts. Paying money to have everything automated on one’s behalf is not always the answer to everything.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.