Understanding The Wealth-Creating Power Of Cryptocurrency 

Understanding The Wealth-Creating Power Of Cryptocurrency 

Well, one thing is for sure: Nothing is going to be the same in the cryptocurrency market after this year.

Perhaps the most jarring example of the bearish crypto market this year has been the complete collapse of Terra (LUNA).

As you can see, it’s not pretty. The coin lost 98% of its value or around $40 billion, in a matter of hours.

While this drop was shocking for a lot of crypto investors (and rightfully so), it just goes to show that value destruction can happen to even the biggest cryptos out there.

The sister token to TerraUSD (UST) – an algorithmic stablecoin pegged the U.S. Dollar – exposed a major fault within the crypto industry: under-collateralization.

However, my team and I don’t see this as fault. Instead, we see it as an opportunity of what to look for and what to avoid.

I firmly believe cryptos and blockchain in general represent some of the most promising innovations of our time. But just like the internet before it, this shift won’t happen overnight.

Long-term, I am extremely bullish on cryptocurrencies. But this cryptocurrency bubble must reach its natural conclusion the same way the dot-com boom of 2000 did — with an enormous crash.

While this may be the beginnings of “the big one” for cryptocurrencies, this crash isn’t the end. It’s far from it.

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Source: Investor Place

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