So again Bloodbath huh? Bloody Evergrande?
How many different kinds of markets do we know of? Stock market, Crypto market, foreign exchange market, gold market ....
But there's a big connection between these markets. A famous example being the connection between stock market and gold.
Gold is usually seen as a safe hedge against the volatility of the stock market. And therefore, both stock markets and Gold prices go opposite. When stock market is booming, people tend to take money from Gold and invest in stocks. Similarly when stock market is crashing, they convert their stocks to Gold. But....(yes, there's a but).. why are people still continuing to do it when there's an alternative!
Yes, I was talking about Bitcoin. Termed as digital gold, Bitcoin can be guaranteed a better returns than gold wih an assurance of 200%. With just 21 million in circulation, and many already lost or locked without keys (yeah, so lost), its demand is growing and growing day by day, and there is only one way Bitcoin prices can go in the long run, and is up!
The problem is obvious; Bitcoin, even after being termed digital gold, follows the stock market, more than actual gold! Just like today, when something happens in the stock market, Bitcoin price imitates it! When sucks fall, Bitcoin falls harder. When Bitcoin falls harder, the entire Crypto market falls even harder
Is there a solution? Yes!
Can it work? Don't know, to be honest
Let's see what needs to be changed:
First of all people need to realise that Bitcoin is more than a traded commodity, and needs to be treated like gold; the rest of the coins: may be treated like stocks... doesn't matter
And the entire Crypto market following Bitcoin should change, and I honestly believe it is going to happen sooner than later, and the Bitcoin Dominance seem to decrease year by year
I see a future where Bitcoin follows Gold market, while the rest of the Crypto follow the stock market! Gold is always Gold, Bitcoin must always be Bitcoin!