Remarkably, Ran NeuNer, the host of CNBC Crypto Trader, has yet again pointed out an interesting key growth area in Bitcoin (BTC) adoption. NeuNer, who’s quick to observe the latest news and also to admit that there’s almost no correlation between BTC adoption or actual growth and developments and market prices, has now tweeted that there have been over 2 million Blockchain wallets that have been opened since September 2018.
Latest News Does Not Accurately Report Growth
So, in a mere 4 months and at a time when almost all the money has been wiped off of the nascent digital currency market, we are seeing an incredible number of new crypto wallets being opened. Perhaps some of the latest news as far as prices does not reflect industry growth.
However, new wallets could have been created by bounty hunters, or are for “fishing farm” purposes. And maybe even some of these wallets are involved in illicit activities, or other things that are bad for ecosystem development. Even if we factor in that there may be many garbage or duplicate wallets that have been created, common sense says that at least a significant portion of these wallets may have been created by people who are genuinely beginning to take an interest in cryptocurrencies.
These new users may have not invested huge amounts but at least they are trying to learn about cryptos. So all the FUD that mainstream media tries to put out there, while labeling it the latest news, does not accurately reflect real industry development. In fact, BlockTower Capital CEO Ari Paul has observed that there’s actually “5x more development” going on right now compared to last year.
Moreover, blockchain wallet is obviously not the only crypto wallet out there. There are many others and more than likely there are many new users opening accounts. Although you’ll find that people have thrown their life savings onto exchanges, only to maybe become homeless due to the market crash. However, buying the hype that’s sold in the form of latest news and irresponsibly investing more than one afford to lose, is not the type of investment advice being offered by the more respectable and knowledgeable crypto adopters out there.
Invest Small Amounts, Just To Learn
Charlie Shrem, an early bitcoin adopter who got into crypto when BTC was trading at $5, has said that we must only invest small amounts. He also said that, at this time, we should focus more on learning about cryptos, instead of focusing on price. Moreover, Kendrick Nguyen, the CEO of Republic, a crowdfunding platform, has also that we should only be investing small amounts as cryptos are a highly speculative and risky asset class. So, no need to get suckered in by the hype which is often sold as the latest news.
No, BTC will not be worth $1 million in 2020 like McAfee says. No, XRP won’t be worth $589 no matter what crazy people say. But to put things more into perspective, Erik Voorhees, a sensible and experienced crypto veteran, recently remarked that those who have not been through wild market cycles like these before, have not learned how to psychologically and economically cope up with such a market.
Indeed, none other than Arthur Hayes, the CEO of BitMEX, a crypto derivatives trading platform, has said it best:
“The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go ‘fuck it’, and dump everything they can.”