As the saying goes, all good things must come to an end. A six-week long stock rally has begun to cool off recently and some popular crypto coins are following the same trend. Contributing factors to the recent drop in value include signs of the pandemic worsening and worries about the potential impact on the economy.
While Bitcoin was riding an upward trend most recently, news stories abounded of exponentially higher potential values arriving in the near future. Over the long term, a continued rise in value is certainly possible if not likely. One can’t help but wonder if all the recent hype was part of an attempt to inflate the value so that big players could sell off and cash in while others would be left with lower valued holdings in the short term.
We’ve seen this story before. Bitcoin and other digital coins which are not backed by any assets have consistently experienced massive volatility. The pattern of this volatility often appears less than random.
As the value of Bitcoin rises during these patterns, a steady stream of bigger names starts chiming in about how it will reach various higher numbers. This speculation gets reported in news reports and it leads to increased buying activity. Most recently there was considerable talk about how institutions were buying in large volume and contributing to a meteoric rise in value that happened very quickly.
While it would be tempting to think that institutions are likely to be focused on long term holdings and not looking for a quick profit, the reality is that no one likes to lose money. If a company sees its crypto wallet dropping in value quickly enough, it is likely they will sell before the coin crashes.
When institutions sell in large volume, that causes an already dropping value to crater even faster. Even though one can say that eventually the value is likely to recover and increase over time, the question is what if someone wants access to those funds before the coin value has time to recover and grow?
This all paints a dark picture for non-asset backed crypto coins in the short term. It always sounds exciting when daily news reports gush about rising values and everyone is making money. But anyone who sees the bigger picture can quickly realize that these rallies are often masking an institutional set up of sorts, where large coin holders can artificially inflate the coin value through their use of the corrupt mainstream media and quickly sell for a quick and massive profit, while leaving individuals with major losses in the interim.
That is why asset-backed crypto coins like META 1 Coin are a better option when it comes to stability. META 1 Coin is not designed to be a get rich quick scheme with rapid increases in value, though market forces can influence changes in value. Rather, META 1 Coin operates with smart contracts that facilitate stable growth.
It is backed by gold and is only available for purchase by living, breathing Humans and not corporations or other institutions, which helps stabilize its value. It is a coin inspired by the stories of brave Humans throughout history who stood for freedom despite innumerable challenges. META 1 Coin is a coin for Humanity that drives abundance and freedom for all people.