Isn’t it interesting just how emotional cryptocurrencies are, dear readers?
A sell off ensued when it came to light that a small cryptocurrency known as verge (XVG) was hacked. Many crypto investors then immediately assumed (very incorrectly) that bitcoin and ethereum are vulnerable and P-A-N-I-C set in.
Last week Italy was dominating headlines, many fearing a newly formed right-wing coalition could attempt to force an election to leave the eurozone. Cryptocurrencies dropped following the news, but have since rebounded, as a compromise has been found between the major political parties has made new elections unlikely. We should note that bitcoin and ethereum bottomed at $7,100 and $520, at their lowest points.
We at Team Crypto Mouse believe that the cryptocurrency sell-off in the aftermath of both of these two events is unjustified. Here’s why:
Firstly, the beauty of cryptocurrencies is that they offer an alternative to traditional fiat currencies (such as the Euro). Remember back in 2013 when the price of bitcoin spiked when the government of Cyprus taxed some bank deposits by more than 40% to bail out the country’s banking industry.
Next, remember, dear readers, hacks of smaller (and often scam) currencies have absolutely no bearing on legitimate projects like bitcoin and ethereum.
Markets have been focused on the potential bad news, which is often what saturates media headlines daily.
You might have missed some promising new developments though, namely…
Earlier this week, Chinese President Xi Jinping praised blockchain during a speech at the Academy of Sciences. Could China be readying for new pro-blockchain regulation? Could be.
And don’t sleep on South Korea’s National Assembly proposing new legislation to lift the ban on initial coin offerings.
Taking all of the above into account, Team Crypto Mouse believes cryptocurrencies are currently trading at a discount to their long-term potential.
Discount shopping is in full effect, dear readers, especially when promising crypto developments in China and South Korea could be just be around the corner, AND have not yet strongly impacted the cryptocurrency markets.