Robert Testagrossa – Why We Are Unlikely to See a Repeat of Crypto’s 2018 Crash
One of the main reasons why so many people are yet to invest in crypto is because of what happened back in 2018 when everything was going well, until it wasn’t. Back then we saw a huge dump in prices and the likes of BTC very quickly went from $20,000 right down to $3,000, losing a lot of people money. Experts like Robert Testagrossa however, believe that this is something which is far less likely to happen in today’s landscape. There are no guarantees of course, not even from the experts, but there are some indicators which we have seen that do tend to suggest that we are unlikely to see a repeat of that dump.
The Big Hack
Something that many people fail to mention when they talk about the drop in prices which we saw, is the large scale hack of a number of Chinese exchanges prior to the price drop. These hacks saw a lo of crypto stolen and it certainly had people worried about their investments. This was one of the major reasons why the crash eventually happened. Today, whilst it is not impossible, exchanges, wallets and accounts are safer than ever before, and a hack of this scale seems unlikely.
Another very important point to make here is that over the past 12 months we have seen some seriously major players in finance begin to invest in crypto. When people see the likes of JP Morgan and Visa getting involved, it does become quite clear that there is more faith in the technology than ever before. This faith actually breeds more faith, as whenever people see this big institutions get on board, they feel happier about investing.
Spending The Money
So many critics of BTC have suggested that the fact that the money could never be spent meant that t was never a real currency to begin with. This has all changed now however and there are many countries, towns and companies which will accept payment in BTC. We are also seeing examples such as Miami, who are going to roll out a trial to pay people and have them pay taxes in BTC. These are just examples of how this currency is moving forward where many thought that it would not.
Nobody is saying that the price will never drop by a big amount, this could certainly happen. What people are saying is that we will not see a monster dump in the same way that we saw back in 2018. Another reason why BTC gives us the confidence that this will not happen is that it has been showing levels of resistance which we haven’t seen before. Each time that new levels are tested, the currency is performing very well. Now this may be bearish behavior in a bull run or it could signify a hugely positive future for the currency.
As we have said, there are no guarantees that the price won’t completely crash, but given what we are seeing, it is looking less likely by the day.