It’s been one of the bloodiest days in the history of cryptocurrencies.
Altcoins, in particular, have taken a hammering. Litecoin is down more than 10%, Australia’s PowerLedger is down around 20% and even Ethereum is down around 15%.
So what does this mean for the future of the emerging “asset class?”
Well, as always, ‘Crypto Twitter’ is having a lot to say.
Is this the end? #CryptoCurrency is bleeding out profusely! It’s not like this has happened before or anything… The last 3 bull runs #Bitcoin dropped 90%!!! Does the cycle repeat or is it finally over. Hmmmmm #cryptocrash #crypto
— Patrick Wieland (@PatWielandLIVE) August 14, 2018
Here in Australia, Alex Saunders from crypto community ‘Nugget’s News’ has flagged a potential “relief rally.”
— Alex Saunders (@AlexSaundersAU) August 14, 2018
American digital asset strategist Meltem Demirors has told CNBC that, as with early internet stocks, real traction will come in time.
“New technologies that shift the paradigm take a long time to really understand,” Ms Demirors said.
— CNBC's Fast Money (@CNBCFastMoney) August 13, 2018
There’s talk of the “depression” phase ending… and the “acceptance” phase beginning.
Even though today was an awful crypto day I literally felt my stage of grief shift. It definitely switched from depression into acceptance. Maybe that’s a bottom sign, or maybe it’s just denial
— Crypto Quantamental (@CryptoQF) August 14, 2018
So much pain…
Bloodiest day in alt land I’ve seen in a LONG time. The capitulation is real. #bitcoin
— Felipe (@PhilCrypto77) August 14, 2018
Meltem Demirors says the “narrative” around bitcoin is still “really hard to grasp,”
“Really the only metric we have for most cryptocurrencies is the price, and price is such an imperfect metric,” she told CNBC.
“What does actual utilization look like? That’s really the struggle for crypto right now.”
Demirors said investors should ignore the price and think of cryptocurrency as an early internet stock, such as Microsoft or Amazon.
Those stocks have turned into incredibly sound investments, but it took years for them to recover from initial highs after the “dotcom bubble” burst.
“What we saw in crypto was this massive run-up, where everyone got ‘FOMO,’ or fear of missing out, as we like to say. What it caused is a speculative bubble,” she said.
But Demirors said capital is now starting to get deployed into “building real businesses that serve a real purpose.”
“We are starting to see real traction. A lot of it is really dependent on finding those data points, those metrics, that are going to drive that growth story.”