Can virtual currencies become safe assets?

Unfortunately, cryptocurrencies are currently

falling sharply.

Bitcoin is around seven hundred thousand yen,

but even more so

altcoins such as Ethereum and Ripple

are dropping, and it is around the level of last November.

If you only look at the price,

many people are becoming pessimistic.

“Has cryptocurrency come to an end?”

I am concerned about the decrease in price and the reduction of assets,

but it is precisely during such times

that I focus on what kind of future cryptocurrency has

and its potential.

The SEC delaying the ETF announcement caused a large drop,

but it seems to be a deliberate move to trigger declines,

and now large short-term funds are trading,

so it can be said that prices have temporarily fallen.

Therefore, it is not wise to react to every fluctuation.

For example, if the Bitcoin I hold becomes 3,000,000 yen in a year,

then even if Bitcoin is 500,000 yen now,

there is no particular problem, right?

If the price eventually rises,

that is what matters.

Regarding cryptocurrencies, at present

there is not much

bad news circulating, and regulations and

the practical application of technology are progressing step by step.

So I am in a position where I don’t particularly worry

and I hold cryptocurrencies.

I keep track of what the currencies I hold are

currently doing, and if everything is fine,

it is one option to leave them as they are without looking at charts.

Another future aspect of cryptocurrency

is the potential to be a “safe asset.”

I summarized this in an article.

https://bitcoin-newstart.com/safety-asset

Cryptocurrencies are built on blockchain technology

and basically operate on a network that is not subject to regulation.

Therefore, it is impossible to alter transaction histories, and they are publicly available worldwide.

And you can manage them in your own wallet.

Currently, countries like Venezuela and Turkey are

buying cryptocurrency due to economic crises.

There is a situation where people are buying crypto.

Why are citizens buying cryptocurrencies?

We have written about this in an article.

https://bitcoin-newstart.com/safety-asset

Well then, thank you for reading again today.

Thank you very much.

Of course, if the price drops significantly,

everyone will want to sell to prevent further drops.

However, if there is future potential for cryptocurrencies,

if you exit the crypto market,

it may be the end at that point.