Removing the get-rich-quick enthusiasts could help establish a more viable, long-term future for cryptocurrencies
Reuters
Despite the endless cries of “decentralization” and a constant stream of articles claiming that bitcoin is going to reach a million dollars any day now, interest in cryptocurrency has slumped massively over the past couple of years.
Data taken from Google search trends indicates that searches for Bitcoin have declined by 60 percent since the beginning of 2018, reaching their lowest levels in almost two years. For Ethereum, the world’s second largest cryptocurrency after Bitcoin, the stats are similar.
People aren’t just searching less for Bitcoin; they’re also buying fewer cryptocurrency products. As Finance Magnates reported in August, Nvidia, a graphics-card producer, confirmed that sales of its cryptocurrency-dedicated graphics cards had slipped from $289 million in the first quarter of 2018, to $18 million in the second.
Trading volumes have also declined massively since reaching a peak in early January of this year. On January 7, the cryptocurrency market capitalization was equal to just over $835.51 billion. Today it's $215.91 billion - an almost 75 percent decline.
Cryptocurrency market capitalization for the past 12 months. Note the spike in January. (source: CoinMarketCap)
Naturally, exchanges have also reported a precipitous decline in trading volumes. Trading on Coinbase, one of the largest exchanges in the world, has shrunk by 83 percent since January of this year.
The huge spike in cryptocurrency trading in late 2017 and early 2018 was undoubtedly driven by people trading under the greater fool theory. They bought, thinking people would continue to buy after them, driving up the price and enabling them to sell.
Up until mid-January, that straightforward trading strategy might have worked. Since Bitcoin has been comparatively stable since then, people trading using the logic of the greater fool theory will have been less interested - or indeed totally uninterested - in trading cryptocurrencies.
In fact, though the great-rich-quick mentality lingers on, it is far less pervasive in the cryptocurrency markets than it was 12 months ago. That is a good thing. If cryptocurrency is, as its fanboys make it out to be, the currency of the future, the market for it can’t be populated almost exclusively by people who are only in it for the short-term.
Conversely, if the price of cryptocurrencies remains stable, that would allow businesses to start taking it as a form of payment. That would silence many of the critics who say that cryptocurrencies have no use and no real value.
For that to happen, however, the industry needs to rid itself of its get-rich-quick hustlers. Once all of those wideboys are gone, cryptocurrency might start to live up to its potential.
Despite the endless cries of “decentralization” and a constant stream of articles claiming that bitcoin is going to reach a million dollars any day now, interest in cryptocurrency has slumped massively over the past couple of years.
Data taken from Google search trends indicates that searches for Bitcoin have declined by 60 percent since the beginning of 2018, reaching their lowest levels in almost two years. For Ethereum, the world’s second largest cryptocurrency after Bitcoin, the stats are similar.
People aren’t just searching less for Bitcoin; they’re also buying fewer cryptocurrency products. As Finance Magnates reported in August, Nvidia, a graphics-card producer, confirmed that sales of its cryptocurrency-dedicated graphics cards had slipped from $289 million in the first quarter of 2018, to $18 million in the second.
Trading volumes have also declined massively since reaching a peak in early January of this year. On January 7, the cryptocurrency market capitalization was equal to just over $835.51 billion. Today it's $215.91 billion - an almost 75 percent decline.
Cryptocurrency market capitalization for the past 12 months. Note the spike in January. (source: CoinMarketCap)
Naturally, exchanges have also reported a precipitous decline in trading volumes. Trading on Coinbase, one of the largest exchanges in the world, has shrunk by 83 percent since January of this year.
The huge spike in cryptocurrency trading in late 2017 and early 2018 was undoubtedly driven by people trading under the greater fool theory. They bought, thinking people would continue to buy after them, driving up the price and enabling them to sell.
Up until mid-January, that straightforward trading strategy might have worked. Since Bitcoin has been comparatively stable since then, people trading using the logic of the greater fool theory will have been less interested - or indeed totally uninterested - in trading cryptocurrencies.
In fact, though the great-rich-quick mentality lingers on, it is far less pervasive in the cryptocurrency markets than it was 12 months ago. That is a good thing. If cryptocurrency is, as its fanboys make it out to be, the currency of the future, the market for it can’t be populated almost exclusively by people who are only in it for the short-term.
Conversely, if the price of cryptocurrencies remains stable, that would allow businesses to start taking it as a form of payment. That would silence many of the critics who say that cryptocurrencies have no use and no real value.
For that to happen, however, the industry needs to rid itself of its get-rich-quick hustlers. Once all of those wideboys are gone, cryptocurrency might start to live up to its potential.
Schwab Aims Crypto Custody at Its $5 Trillion Advisor Channel by 2027
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Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
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This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
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This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
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This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
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This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
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A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
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Attendees will walk away with:
A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
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This session gathers practitioners with on-the-ground experience in both markets to examine what it takes to build and run operations in Thailand and Vietnam.
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A clear view of setup requirements in both markets: entity structures, timelines, and what first-time operators tend to get wrong
Understanding of the offshore broker model and how compliant operators work within domestic restrictions in each jurisdiction
Insight into talent acquisition, client onboarding, and distribution in markets where language, culture, and acquisition channels don't follow standard APAC assumptions
Perspective on adjacent Southeast Asian markets worth monitoring for the next regional move
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Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
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Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
High-net-worth traders account for an outsized portion of revenues for various retail brokers.
This session will gather heads of premium, acquisition, and product experts to reveal how they build their client base in Asia.
Attendees will walk away with:
Understanding of how brokers view premium clients (beyond deposit size).
Insight into which services, products, and benefits increase trust and LTV.
Examples of offerings that scale without inflating cost or operational burden.
Lessons from leading brokers on growing premium segments and what’s next.
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The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
The persisting price drops test the industry's commitment to crypto adoption. While on-chain innovation is making headway across market mechanics, from stablecoins to tokenization, investors remains cautious.
This session brings together market structure experts and institutional investors to explore how a prolonged bear market affects their long-term strategy, and where the opportunities lie ahead of the next cycle.
Attendees will walk away with:
First-hand account of the bear market's impact on various industry players
Understanding of what custody, connectivity, and settlement gaps still hamper growth in APAC
Insight into how client mandates and operational readiness are shaping who moves and who waits
Perspective on what institutional investors need to move toward actual digital asset capital deployment
