As with the fundamentals of economics, when demand increases, prices increase to curb demand. And vise versa.
As a new player in the elements of economics, the charts peaks and bottoms are unfathomable. Where else traditional instruments are now scalable.
Arguably, crypto is way too infantile to be experiencing winters. With our age of information, shortened financial seasons are bound to result, but only in the user's peripheral. The instruments themselves are still free flowing, uninfluenced by global events but the users(traders) sentiment bringing uncertainty in the instruments(driving the ๐).
The total stock market for crypto is:
Let's look at gold:
Then look at stock markets:
Considering the fact that there are other markets as noted above; China, UK, etc.
What is the resulting factor in observing all the markets as a whole? Well, we get to understand how all these markets correlate, as they are all moved by the economic behaviour of world events.ย
These events result from:
- Conflicts
- Contention
- Innovative constraints
- Ebbing Elements
These are what makes business in these times, with every step crypto takes, it gains or loses. Like an infant learning to walk loses balance and rises yet. With more innovation, dedicated to crypto space, balance is gained slowly. As the saying holds hodl on my dear hodlers, the ride is long and full of opportunity.ย
Crypto winter, comes due to the current wave of innovation not being sufficient to sustain growth ๐น for a long term. Examples are: NFT's, utility only understood by a few hundred thousands.
The wave of wallets like Meta Mask rose in moments where crypto was bashed for hackers, also subjecting the model to possibilities of them being vulnerable. Dying down the noise.
Why winter? Perhaps the innovation is bringing solutions in places that don't require attention, perhaps crypto developers should look at bringing more consumer enticing solutions to the table?
Crypto winter is still a myth, only momentary distractions.
Thank you
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