Don’t let the resignation of the EOS CTO and newer regulations fool you.
The resignation of the EOS CTO, the US being opened up from coronavirus, and the co-founder of Ripple selling $400 million of XRP. When considering all of these, a correction occurs as people panicked through the news. Here, we’ll discuss why crypto will rise even further after the correction.
1-The blockchain ecosystem is growing and getting stronger
Crypto is known to be dependent on the blockchain ecosystem. Because the blockchain ecosystem is correlated to the cryptocurrency ecosystem, recent developments of the blockchain ecosystem show that crypto will rise further. Even more, this price collection is not like any other massive crashes where previous crashes would’ve devastated most people in the market.
2-Less trust towards sovereign states
Coronavirus pandemic showed that states cannot be trusted alone to cope with most of the situations in our lives. Especially when considering statistics and various measurements in countries proved that states mostly failed the containment of coronavirus. It became even worse when small businesses had to be shut down and the initial money stock increased dramatically.
3-Increase in M1 money stock and the increase in the M2 money stock is not that strong
Before we go onto this topic, let’s define what M1 and M2 money stocks are. M1 money stocks include cash and cash deposits while M2 money stocks include M1 money stock with less liquid assets.
When we look at M1 money stock, 67% of the US Dollars printed since the start of the pandemic. But when we have a look at M2 money stock growth, the increase was not as sharp as the increase in the M1 money stock. This indicates that people tend to avoid unsuitable exchange mediums. Because this trend is continuing, a massive economic collapse will likely occur due to inflation. But that doesn’t mean that you should take profit while you can.
How do you react to price correction? Share your thoughts in the comments section below.