Cryptocurrency market will see crash and then consolidation

[Aleshia696]

Cryptocurrency market will see crash and then consolidation, Ethereum co-founder says

A number of alternative cryptocurrencies have rallied substantially in recent weeks as investors look beyond the most prominent cryptocurrency bitcoin.
Ethereum co-founder Charles Hoskinson raised concern about "unrealistic" cryptocurrency projects entering the space.
The cryptocurrency market will strengthen after bitcoin alternatives that lack substance have failed, a former chief executive and co-founder of Ethereum said.

"My personal opinion is that we're going to see a consolidation after a crash," Charles Hoskinson told CNBC in an interview Friday. Hoskinson now runs blockchain research firm IOHK, but was previously in charge of Ethereum, which develops the underlying technology for the cryptocurrency ether (also known as ethereum).

A number of alternative cryptocurrencies — including Cardano, a cryptocurrency overseen by Hoskinson's company — have rallied substantially in recent weeks as investors look beyond the most prominent cryptocurrency bitcoin. Ripple's XRP, for instance, temporarily overtook ether as the second-largest cryptocurrency in December.

Blockchain, the technology that underpins cryptocurrencies, records all transactions of a digital currency on a dispersed network instead of one centralized server.

Meanwhile, a slew of lesser-known digital tokens have surged to unprecedented levels over the last few weeks, sending the total market capitalization of all virtual currencies up to three quarters of $1 trillion.

But Hoskinson raised concern about "unrealistic" cryptocurrency projects entering the space.

"What's going to occur is a lot of these ventures that don't have strong fundamentals, don't have good tech, or just unrealistic projects, they will eventually run into some major wall they can't quite overcome. They will fracture up and you will see a lot of them are certain to fail."

But the entrepreneur added that many of these cryptocurrency projects might not fail any time soon as they have enough funding behind them to sustain themselves.

"The problem is a lot of them have a lot of money," Hoskinson said. "It's really hard to fail when your burn rate is $5 million or $10 million a year, and you have $1 billion of capital."

On Sunday, dogecoin, a meme-inspired cryptocurrency that was introduced as a joke in 2013, saw its market value increase to $2 billion just days after hitting $1 billion. Meanwhile, dentacoin, a dental care-focused digital currency that dubs itself "the blockchain solution for the global dental industry," briefly surpassed $2 billion in market capitalization on Sunday, according to Coinmarketcap data.

Dogecoin's founder Jackson Palmer said Friday that it was concerning that the virtual coin he helped create had reached such a high valuation despite the fact that the project hasn't released a software update in more than two years.

"I have a lot of faith in the Dogecoin Core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn't released a software update in over two years has $1 billion market," he said on Twitter.

[Lingqingyi]

This is entirely possible, and I also feel that the bubble in the cryptocurrency market is too big, and the elimination of the bubble will lead to a rapid fall in prices.

[shandi albert]

Today many sites have sprung up to offer buying and selling or investing in bitcoins and this became the spearhead that flooded the crypto market.I think every increase and a decline in the price is always a risk behind it.
There are currently two bitcoin transaction actors.
First, the perpetrator or the industry that stands as a marketplace, the place to meet the buyer and seller of the virtual currency.
Second, actors or industries that offer investment in bitcoin sales.

[sarfwr]

The recent increase in altcoin has scared me. On average, I have more than five times the increase in each token. In the short term, the possibility of a correction is very high.

[Trimegistus]

Indeed, many projects are being pumped with no plausible explanation besides pure speculation. And this is not a good thing...  

I don't know if the bubble is going to burst or slowly deflate itself, but I don't see how these prices can be sustained in the long term.

Unless the market keeps creating more speculative projects, with no purpose besides pump and dump.

2018 will be the year for altcoins to rise, but at what cost?

[Veterock]

"Cryptocurrency market will see crash and then consolidation"
I've been feeling something like this for a long time....

[doeuch]

It will definitely arrive but not sure that It will arrive soon...

There are still a lot of people who are get in the market everyday, bitcoin and altcoin. And there are a lot of people who want to get in but major exchanges are stopping accepting new members :
Bitfinex
Bittrex
CEX
Binance
Anycoin

So a lot of money is ready to enter the market...

But Crash will definitely arrive surely when the first project with a massive cap will bankrupt ... Everybody is going to panic and this will lead to massive crash. and bids wont be available for anything.

[lenj]

This is entirely possible, and I also feel that the bubble in the cryptocurrency market is too big, and the elimination of the bubble will lead to a rapid fall in prices.

Agree but big power of altcoin community will survive. For example bitcoin, it has big supporter its price will be stable.
I think next future only the big powerfull cryptocurrency that will survive.

[penig]

Crash is inevitable.  Consolidation is the more important aspect.  There are too many projects that are too similar, competition is good but for the core ideas to really thrive you need to cull some to get down to a few services/projects in a space.  So who will be the survivors, those coins that will be able to rebuild after the crash and gain real use?  

[cryptocue]

Seems it  will happen a lot of bullruns happening with these shitcoins,probaby people think that BTC is going so consilidate thats why they are moving to alts instead.

[fabianji]

Q: Do you think we are in a crypto bubble? If so, what are some signs of it?
The guy who bought bitcoin at the top, when it spiked from $2 to $30, and then came crashing back down to the single digits, bought in “a bubble” and looked like an idiot at the time. Assuming he held, he looks like a genius today. So it depends on your time horizon. Could the crypto-asset market cap correct by 90% in the next year or two? Totally. Do I expect that same market to be exponentially higher in ten years? Absolutely. Thus, crypto can be in a bubble and undervalued at the same time.

Q: What have you learned/conclusions have you drawn from Bitcoin and cryptocurrencies?
Don’t trade. Buy cryptoassets with long-term potential, ignore the shitcoins, and HODL.

https://bitcoinforplebs.com/2018/01/08/blockchain-evangelist-jeremy-gardner-reveals-the-latest-developments-in-crypto/

[Welckomtome]

The recent increase in altcoin has scared me. On average, I have more than five times the increase in each token. In the short term, the possibility of a correction is very high.

Do you invest only for a short time? If you keep them longer then you can get a good profit.

[reputation]

i always think its crazy, but it more crazy than i think, the traditional VC is getting into blockchain very soon, i think there must be a crash bu when will it happen

[Awnar]

You really cant just eradicate a multi million investment isnt it?. A lot of instigation and lawyers if you are about to shut it down. I mean, their are many millionaires of cryptocurrency needs that service to use if for trading. Even if their is a government mitigation, you need to file a lot of lawsuit to take it down. Although their were many scams that happen ed through the years, it is still anonymous so no one could really vouch for it until they want to risk their identity.

[MasterBTspace]

that is a normal progress of a newborn area

[hasmukh_rawal]

This is the reason why many shit coins are getting a good spike in it's price. The ICO craze is not yet over probably since many shit projects are still getting good amount of investment. There should be a filter or something alike that shouldn't allow shit projects from being executed in the crypto market. If things keeps going like this then I am sure Crypto will really crash since shit projects won't hold the price for longer. People are investing in it just so that they can profit out of the investment. This is not the way how a good coin works.

[jyotianand01]

This is a natural phenomenon of every currency market that market crash at resistance level and after consolidation start moving up and crypto market also work with this rule. This rule is healthy for the market and if that not happen, how we got profits.

[mwsind]

it's nature of cryptocoin market if crypto coin price not get up and down then how can increase crypto coin price and new listed coin how can survive.

[Moondoggie]

An adjustment should happen, but mining will continue steadily imo.

[Lindazz]

Yes, I also think that the cryptocurrency market will collapse, if it collapses, then it will rise again after the fall.