Is Now the Right Time to Invest in Cryptocurrency?

Over the past few years, cryptocurrency has become a popular and sought-after investment method. Those who invested in or mined Bitcoin during its early stages suddenly found themselves millionaires, as the price of cryptocurrency unexpectedly soared from 600 to nearly 20,000 dollars. However, after the rise came a decline. Currently, the price of Bitcoin has dropped to 3,800 dollars per unit. Those who decided to invest during the price surge have lost millions, despite the fact that many so-called "experts" predicted a stable growth for digital coins. Many hoped for a "Christmas miracle," reminiscent of last year, which brought significant profits to coin holders. However, this time it did not materialize. Instead, major cryptocurrencies slipped into the red zone and continued to fall. This decline is not limited to Bitcoin but also affects XRP and Ethereum, which have dropped to 0.379 and 128.17 dollars, respectively. Bitcoin Cash even plummeted by 20%, bringing its value down to 175 dollars. What is really happening in the cryptocurrency market, and is it worth investing in digital currencies now? To address these and other questions, we turn to Sergey Tereshkin, the founder of the commercial enterprise "Oil Resource Group." To better understand the entrepreneur’s activities, please visit his website at org-company.ru.

Prospects for the Cryptocurrency Market

According to the businessman, expecting a rise in the value of cryptocurrency in the near future is unrealistic. Many traders have already gone on holiday, and there are no foreseeable reasons for a surge in electronic coins. Despite good capitalization, the market is anticipating a gradual decline. Based on the dynamics of recent months, the price of Bitcoin Cash could soon drop to 120 dollars. As for Bitcoin, the outlook remains bleak, and it is likely that the decline will continue. In Tereshkin's view, there is no reason to worry about the coins dropping to 600 dollars. However, dreaming about a return to 20,000 dollars per unit is equally unrealistic. The past 12 months have brought both sharp rises and falls to the market. Diverse news has caused many to ponder the prospects of cryptocurrencies and blockchain as a whole.

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As we reflect on the conclusions of the departing year of 2018, we can highlight several notable events concerning the crypto market:

Those who dreamed of launching their projects through ICOs should reconsider investing their energy and money. The idea that once allowed for raising funds without bureaucracy and huge financial commitments has been entirely discredited by scammers. They were the first to exploit this opportunity and can now afford to sip cocktails under the palms.
The crypto world is holding its breath in anticipation of institutional investors, who are expected to inject cash and revive the market. Experts believe that the development of cryptocurrencies is on the horizon, but it will not be swift.
A year ago, Bitcoin Cash was rapidly gaining traction, with its market capitalization swiftly rising. Investors placed high stakes on these coins. However, a new competitor emerged—Bitcoin SV—which has displaced Bitcoin Cash from its positions. As a result, Bitcoin SV has quickly established itself in the top 10 cryptocurrencies by market capitalization, with developers promising significant profits and easy mining.

By the end of 2018, many entrepreneurs suffered massive losses in cryptocurrency, amounting to billions of dollars overall. On the other hand, those who used electronic coins for money laundering and transferring funds abroad have benefited, albeit inconsistently. This area has turned into a goldmine for numerous scammers and embezzlers. The absence of oversight from fiscal authorities allows millions to be siphoned from budgets through the cryptocurrency market. Although a price increase would yield greater profits for fraudsters, this group at the very least did not lose their initial investments. So, who was unfortunate in 2018?

Who Lost Millions in Cryptocurrency

If at the beginning of 2018 one of the world's richest individuals, Chris Larsen, had over 17 billion dollars, by year-end his fortune barely exceeded 2 billion. The entrepreneur invested in XRP and incurred significant losses.

Another billionaire, Michael Novogratz, also saw his investments in cryptocurrency turn sour. Initially, he amassed several hundred million dollars through coins, but the past year only brought him losses, resulting in his exit from the billionaire ranks. His losses are nearing 140 million dollars.

However, it wasn't just entrepreneurs who lost substantial sums in cryptocurrency; certain developers of electronic coins also suffered. For instance, Joseph Lubin, one of Ethereum's co-founders, lost billions. In January 2018, he held around 5 billion dollars in Ether, but as the price of cryptocurrency fell nearly tenfold, his wealth reduced to approximately 500 million.

A similar fate befell fellow Ethereum co-founder Vitalik Buterin, whose fortune plummeted from 500 million to 50 million dollars.

Mark Dow, a former IMF employee, trusted cryptocurrency as well. However, the economist proved to be more foresighted than many business owners and coin developers. Dow correctly predicted Bitcoin's steep drop at the end of 2017. While there’s no reliable information on how much he gained from this stance, he undoubtedly came out ahead, making him one of the few whose investments in cryptocurrency paid off in 2018.

The year coming to a close has prompted even experienced businessmen to reconsider the stability of digital coins and the market as a whole. The occurrences over the past year have reaffirmed that it is unwise to invest all free capital into a single venture. Otherwise, one risks losing everything, as many inexperienced and overconfident entrepreneurs have learned the hard way.

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