Since my last post in August, a lot has happened in the cryptocurrency space. The price of an Ether has dropped from the highs of >600$ to the lows of <200$ in the span of 1 month but is now appearing to stabilize. A number of articles sprung up trying to rationalize these huge drops including regulatory crackdown from various government agencies worldwide, price-correction to overvaluation and hype caused due to high-visibility ICOs and a few more. As mentioned in one of my earlier posts, before investing in any cryptocurrency or token, it is necessary to know the technical details, most importantly, where the technology is headed in the long term, rather than only knowing the short-term market trends and hype.
In my opinion, crashes such as these are a part of the natural cycle of any market and also necessary, in a way, to recalibrate the expectations that the market has from these technologies, to a more realistic level, and serve to deter people whose only motive is to make quick money and not interested in supporting and contributing to this new movement. The Ethereum community, at large, is aware of the shortcomings of the current state of the blockchain technology such as scalability, speed, inefficiency of mining process and transaction costs and different groups are experimenting and working on different alternatives ideas such as Sidechains, Plasma, Proof of Stake, Sharding etc. To comment now as to which of these technological options (or a combination of these) will prevail would be pure speculation but I can say with confidence that going forward that the technology will become better in terms of utility and usability.
Luckily the author had invested only a reasonably small portion of his “risky-investment” component of his savings into these cryptocurrencies when they were clearly overvalued in pre-August time. When the price went below 275$, he started investing a larger amount into the cryptocurrency knowing that this is a fairer price and in the long run, the technology (despite its failure to live up to all the media-hype that it got in a short span of time), will improve and evolve to fulfil its original promise of a more transparent, inclusive and trustworthy internet-economy. Currently the price is somewhat stable and quite undervalued at 200$, so it is a good time as ever to start building your cryptocurrency portfolio. Good profits are waiting to be made if you are in this for the long-term! Lets keep our fingers crossed and coffee-pot warm for the days ahead.