Crypto executives think a bear market is good for the industry

Cryptocurrency became an instant hit amongst investors in the early days of its launch. Bitcoin, in 2009 made its entry into the global market as the first crypto token. Sincethen the philosophy of crypto interested everyone around.For crypto trading and investment log onto bitcoin trader.

Working model of cryptos

Cryptos work on the blockchain philosophy and use a decentralized finance model. It means every transaction breaks down into individual units of blocks. Such blocks are then stored in a public ledger accessible to everyone on the network. But, the fun factor here is that such blocks do not trace back to their original user. The process of validating and assigning such user tags is also known as mining.

In the early days, there were many concerns and noise raised about data mining. Such activity involves a huge volume of electricity and internet connectivity. This creates a large impact on the environment making it hazardous.

Benefits of cryptocurrency 

The working model of cryptos attracted many investors. Listed below are a few benefits of making crypto tokens different from others.

Liquidity in transactions

The biggest advantage of crypto tokens is their ability to liquidate. It means the currency in one country can convert itself to another currency. It takes less than an hour to transfer Bitcoin from one country to another. This feasibility makes it much easier to enable peer-to-peer transactions.

Ability to maintain anonymity in transactions

Yes, every user transaction in the crypto token is anonymous. Every crypto transaction takes a numerical code during the mining process. For every crypto trading, the transactions are stored in a block in a chain of networks. Despite being accessible on the network, it becomes impossible to trace these transactions.

No regulation and lack of regulatory agencies

The primary working model of crypto tokens is its decentralized finance model. These crypto tokens are devoid of regulatory authorities including central banks. Banking or regulatory agencies do not track these transactions making them untraceable.

Understanding bear market

The terms bear and bull market is often used interchangeably. If you have been following the crypto market for a while then you might be well aware of this phrase. A bear market is nothing but a market condition where supply exceeds demand. It means there is a huge amount of supply in the market but investors are not ready to take their bet.

This type of market is particularly popular with pessimist investors. Also, the bear market continues to exist and often takes this phase. Investment experts also opine that there is no timeline on when this phase will end. The market demand continues to decline and supply is on an increasing scale.

But is a bear market not a period for fair investment? This is a fundamental question in the mind of every investor. Any experienced investor will advise making the best use of a bear market. Such market conditions can also present users with a positive environment for investments. If you are looking for investing for a longer period then a bear market is your choice. The market will reverse its strategy and if you are on the lookout for profits then invest now. Also, if you are an experienced investor then it is best advised to continue your investment. Market fluctuations are a part of investment patterns and they will recover sooner.

Is the current bear market good for the crypto industry?

The simple answer is yes! The market is fluctuating and investors are seeing such price changes for the first in history. The top-selling token Bitcoin fell to an all-time low. The token today sales at $28k which is an all-time low in the last three years. Not just Bitcoin, but even other cryptos are feeling the heat. Ethereum, Luna, and other tokens are finding it difficult to survive the pressure. The market capitalization of cryptos has fallen to less than $1.5 trillion. The industry has witnessed vanish of more than half of its investments in a month.

Despite this price fluctuation, crypto experts believe that the current phase is healthy. The market needs to go through these varying changes to revive and revamp.

If you have been on the lookout for investing in cryptos then this is the best time to do so.

by Dean Miller

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