Confronted by crypto’s skeptics and sharp volatility in pricing, digital-currency evangelists have been urging investors to think long term and not to pay attention to short-term fluctuations.
But now the proponents are forced to take their own advice.
The continued fall in cryptocurrency prices, despite a short two-week lull, has given voice to skeptics and critics. Having argued and loudly defended crypto, digital-asset gurus are now indulging in another exercise: no longer staring at price screens, preferring to forget the pricing ups and downs.
“I’m so bullish on crypto I haven’t checked prices in weeks,” posted Tyler Winklevoss on his Twitter account. He and twin brother Cameron form one of the most recognizable duos in the crypto sphere.
Cameron Winklevoss retweeted his brother’s post, suggesting that at worst he thinks this is the best stance to take in the face of the current price slump or at best he does same.
Outside the cryptosphere, the Winklevoss brothers are known for winning their fight against Mark Zuckerberg, whom they accused of stealing their idea of a social network to launch Facebook (FB) – Get Meta Platforms Inc. Class A Report (now Meta). They used part of their multimillion-dollar settlement to buy bitcoin and launch Gemini, one of the most popular cryptocurrency exchanges that enable users to buy and sell crypto.
Cryptocurrency prices are now far from their highs reached in November. The world cryptocurrency market was valued at more than $3.1 trillion on Nov, 8, according to CoinGecko, which tracks the prices of thousands of tokens. The market is now valued at $1.77 trillion. So it lost just 43% in a bit more than three months.
Bitcoin prices are now fluctuating around $37,665, down 45% from the all-time high of $69,044.77 reached Nov. 10.
As for ethereum, the second digital currency by market value, its price has fallen to $2,604, down 47% since it reached a high of $4,878 on Nov. 10.
This decline in prices is due mainly to the Federal Reserve’s probable withdrawal of the economic support that it put in place in the early days of the Covid-19 pandemic. Investors seem less interested in risky assets.
Many crypto observers thus say that the decline in the prices of digital currencies will be spread out over time, a period the industry calls the crypto winter. The last time this happened was in 2018.
“Many of today’s popular cryptocurrencies are simply speculative instruments that carry significant risk as they have no real-world utility, are not a productive asset and do not offer a true store of value,” said Nick Agar, founder of AXIA.
“Individuals should instead look for projects that have actual worthwhile utility and an economic design that provides fundamental value on an ongoing basis to help them avoid the negative impacts of volatile markets.”
For billionaire Michael Saylor, confidence in the price rebound remains intact.
“If you oppose #bitcoin you won’t have the money to oppose anything else,” he posted on his Twitter account.
Evangelism — and Pushback
Anthony Pompliano, one of the most influential voices in crypto and a bitcoin investor, urges everyone to change careers and get a job in the crypto industry.
“The future is being built in the bitcoin and crypto industry. Quit your job. Come get a new one. There are more than 600 open roles at the top companies in the industry. Apply,” he tweeted to his 1.5 million followers.
Unsurprisingly, their posts elicited many negative comments and mockery.
“Do your homework before applying. 40% or more companies may not make it past a year,” one of the users commented on Pompliano’s post.
As for Tyler Winklevoss, the users updated him with news of the market.
“I have checked and it is not doing good,” wrote one.
“It’s way down. Might want to open your eyes,” added another user.