Mt. Gox, Ripple and Stellar co-Founder Jed McCaleb doesn’t have the same name recognition as Satoshi Nakamoto or Vitalik Buterin but he was just as instrumental in shaping the current state of the cryptocurrency ecosystem. Therefore, it’s safe to say he knows a thing or two about where this market is headed. In a time where “FUD” is at an all-time high, McCaleb came out to voice his own opinion that the alleged bear market is fake news and we’re at the forefront of a new crypto wave.
IS 2018 THE YEAR CRYPTO DIED?
If you’ve been following the crypto market in 2018, then you know it’s been a year of ups and downs, (but mostly downs.) In the past year, the majority of cryptocurrencies have fallen from their record highs of 2017. In fact, the value of all cryptos fell from $825 billion to $125 billion. As a result, mainstream media made it clear that this was finally the end for the Bitcoin and altcoin fad. Yet, McCaleb offers a different viewpoint on this opinion.
HERE’S WHY THE CRYPTO CRASH IS FAKE NEWS
In a recent interview with Yahoo Finance, McCaleb claimed that crypto investors and consumers should not be worried about what they hear on the news. Expanding on the subject, McCaleb stated that it’s “funny when people say crypto is down…it’s still way-way up.” While looking at the prices of crypto, it is true their prices are lower than in previous years. However, that is not indicative of the industry’s strength which is stronger than ever. McCaleb went on to say that the bear market does not really affect business all that much. Sure, a bull run will definitely bring more attention along with more capital but all in all, the crash only hurts a select few, which overall, is a good thing for the industry.
THE CRYPTO INDUSTRY NEEDS A REBOOT
Despite McCaleb generally painting a positive picture of the crypto industry, he also had had a few choice words about the hype-driven nature that some projects survive off of. He stated that the “allocation of capital and resources is wild to watch when these projects that have zero technical merits get millions of dollars.” McCaleb makes a valid point. Just look at projects like Tron for example.
People continue to dump millions into Tron despite there not even being a workable product yet. One could make a strong argument that the industry consists of 90% of companies like Tron. For that reason, this current market crash will largely affect those with no inherent value while the true leaders of crypto continue to grow, develop and profit. So how do investors survive this great, crypto market clean up?
THE NEXT BULL RUN: IS YOUR CRYPTO PORTFOLIO READY?
Based on McCaleb’s statements it’s time to seriously reconsider your profile. This bear market gives you an opportunity to buy valuable cryptos cheap. One good way to do that is put up your crypto as collateral on a lending site like YouHodler. From there, you can get a cash loan and reinvest that into the Bitcoin, Ethereum, Ripple, etc. Ultimately, you want a diversified portfolio with strong coins that can survive the bear market and will skyrocket when mainstream adoption eventually takes place.
Cryptocurrency is something imperative and necessary.