Thursday , August 5 2021

Why did Bitcoin, Ethereum and all password markets lose value?

The opinions expressed herein are those of the authors and do not necessarily represent the views of

In my view, investors who invested in 2017 and Q4 wanted to purchase Bitcoin (BTC) and Ethereum (ETH) for the sole purpose of exchanging specific ICO tokens to invest in BCO and Ethereum. Buyers of Bitcoin and Ethereum did not want to own Bitcoin or Ethereum. They wanted to buy a new token from the Initial Coin Offer (ICO), but they had to buy Bitcoin and Ethereum in a simple form to get what they wanted. The owners of Bitcoin and Ethereum did not want to sell. They were watching property price hikes, why would they do that? They also believed in Bitcoin and Ethereum. So the price in the world of "supply and demand" has risen.

Then the company that completed ICO became a whale and downloaded the tokens in December and January and began to turn the vast demand dynamics for Bitcoin and Ethereum on to all Bitcoin and Ethereum sellers. After the New Year's hangover, startups had to change their passwords to pay for technicians and create start-ups.

Then it was fear to move from the bank. In the third and fourth quarters of 2017, under pressure from US regulators, ICOs slowed and nearly stopped in early 2018. Since then, ICO has either declined or slowed down. New token issuers began receiving trust funds without going through Ethereum. Ethereum killed more demand and left the seller with a "fork" and no buyer. In the world of "bid request" the market has subsided. The exciting dynamics of the current market are that the prices of all Crypto groups are highly correlated. If you look at the price of all tokens in CoinMarketCap, you can see that there is a perfect correlation between most of the prices. Bitcoin and Ethereum move up and down together, and most other tokens are correlated in the same way. It should not be, but if there are no banks that are analyzing and reporting startups like Apple, Amazon and Microsoft, that's the current situation. So Bitcoin can raise or lower the token price, but gravity drag now works in both directions.

Another thing was developed in 2018, and all of the funded ICOs found that they were not filled with angels or VCs who were experienced in real technology. Most are not the chips you really want to invest. Previously all these currencies were related to the price increases of Bitcoin and Ethereum, but they are now pulling down the currency. All of them are correlated, and a large part of the global market cap has generally subsided the cryptobucket.

Why did Bitcoin, Ethereum and all password markets lose value?

Some weak start-up companies will eventually disappear, and we will be polite and even with amazing companies. Today, retail investors in Southeast Asia and around the world are no longer participating in block chained events or participating in fourth quarter results in the latest ICO. By 2017, they accounted for 20% of institutional investors (VC) and 80% of retailers. Now they account for 80% of institutional investors. If a strongly rated VC, such as a16z, Pantera Capital, and 7BC.VC, performs an VC-due diligence and then makes an initial investment through a large investment fund, the retail consumer investor must invest – S1, Reg A +, etc.), you must follow the leadership of VC in your jurisdiction.

Now is the time for the arrival of a skilled VC (VC) to raise real VC funds and generate a large amount of operational flow. A fully focused and decentralized team performs due diligence, performs the highest level of finance, and helps these portfolio companies manage and manage investor risk through diversification and portfolio building. We saw a return to healthy capital financing as well as tokens. Now investors have capital and chips. Some "pure play" requires a token, but it also relates to the due diligence of the old school before you throw away your money. We are also seeing a return to market valuation, not a school dropout team who has never met a salary or wants to get a previous $ 500 million or $ 100 million valuation without acquiring any material before acquiring it. Evaluation type.

The new company, which is expected to raise funds in 2019 and announce its estimates in 2019, 2020 and 2021, will be on average better than the 2017 cohort, which will lead to market recovery. Experienced entrepreneurs sponsored by venture capital are now working on the creation of a block chain. This means that the management team population has evolved beyond the original Bitcoin anarchist.

Bitcoin itself is solid and proven by the survival of numerous Mt.Gox events and numerous up and down cycles. Bitcoin's long-term curve is on the right. If the infamous coin disappears and the cash is gone, the market will become stronger. Many managers were distracted by the experience of traveling around the world and completing the OCI. BTC and ETH thought they would rise and rise if they did not exchange enough passwords. Not only did they have an initial risk, but they added foolishly foreign currency risk (FX stands for FX).

So the good news is that weaker companies that never have to raise money can not use cash faster than expected. Because the password is not worth more than I thought at the time. Who financed the funding? The market will rise due to the deportation of these currencies which currently weaken the market. Today's startups exchange passwords the moment they are received.

Why did Bitcoin, Ethereum and all password markets lose value?

I will also find out that the killer startup is leaving, and we will lead key users to the encryption world. In a gravitationally interconnected world this will increase the overall market flow. Video games like Angry Birds will have a big sense. The token will be adopted. I hope I can see everything I could not think of like Skype. Everyone starts using it. Then many people will be attracted to encryption. The value is simply there.

Every company must move towards the block chain so that neither party can change how many "widgets" are sold or paid to whom. All data from companies, governments and healthcare must be tied in blocks and it will not be tolerated that sooner or later the commercial contract will not be reached and the other party will not be able to say how many widgets they have been sold in China, the United States or Africa. If these business transactions or elections are in a block chain and no one can manipulate the data, all parties can trust each other. The big picture here is that the market can look up and down the big rebound and the long-term trend.

2019 is a great time to invest in building venture capital funds or block chains focused on block chains. Gained lessons from high-performance VCs with a business-savvy investment team, achieved a high performance risk capital IRR for an hour and a half, and received cash cash

Andrew Romain He is also a venture capitalist based in Silicon Valley with 7BC.VC and Rubicon Venture Capital, and author of two of the top 10 books on Masters of Amazon's Benchure Capital and Blockchain.

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