The Cryptocurrency Community DiscussionLoomer (@loomdart) sparked a conversation on crypto-Twitter that got the entire space talking. Although we are still processing the record drop yesterday, it’s probably time to put the industry and the market in perspective.
The response to the tweet was largely jokes intended to lighten the situation which, realistically, is quite serious.
so how the fuck do we convince anyone to ever buy/trade bitcoin again?— lewndart (@loomdart) March 13, 2020
it literally went down 50% in one day
we tell them "it can move 50% in one day"— maru (@wasserpest) March 13, 2020
Others pointed out that there was profit to be made during the recent drop. Bitcoin did, in fact, go below $4,000 and is now trading for around $5,500 or so. However, catching that bounce is hard, and it’s a bad way to convince anyone to want to trade cryptocurrencies. At that point, it’s more comparable to outright gambling than rational trading.
It was just a prank— saylor moon (@MoonOverlord) March 13, 2020
You show them that you can still catch a 3,000% trade after a 50% drop. But I get what you are saying pic.twitter.com/MrbdsqplUY— IncomeSharks (@IncomeSharks) March 13, 2020
The Bottom LineIt’s hard to make a case for cryptocurrencies when it can wipe out almost all its value in just 24H. People may say that this is a once-in-a-lifetime event, but regular stock markets have circuit breakers. The cryptocurrency market, by contrast, runs 24-7 and has no brakes. This means it can crash and crumble gains accumulated over months in just a matter of hours. This has caused some to call for circuit breakers on exchanges. However, it’s hard to imagine how this would be enforced. It’s an idea worth considering, though.
The stock market is now officially in bear market territory as of yesterday and a recession looms large on the minds of most people. There’s no indication that this will be slowing down anytime soon with the ongoing oil price war and coronavirus still spreading rapidly. If you are feeling especially brave, catch the falling knife.
Today's price moves in crypto are a strong argument for industry wide circuit breakers. The crypto markets structurally broke today & leading exchanges need to work together to prevent a repeat.@CryptoHayes @cz_binance @brian_armstrong @jespow @SBF_Alameda @JayHao8 @CiaraHuobi— Tushar Jain (@TusharJain_) March 13, 2020
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