Recently the price of many cryptocurrencies has fallen significantly. In the crash, Bitcoin and Ethereum lost over 50% of their value from the all-time highs. And on the other hand, altcoins bled even more. But this crash doesn’t end the bull-run, nor does it mean that investors are in trouble. It is, in fact, a good thing that there was a price correction in all assets. This correction was well due for quite some time now, and finally, it is here. Some positive news and momentum could lead us to new highs now.
Is the Bitcoin crash a good thing?
The crash showed the ability of the currencies and DeFi platforms to function even during high price movements and system pressure. We did see an increase in the fees for trading, but that is something which can be dealt with in the future. New block additions and increasing the efficiency of the system are something that will happen gradually over time. It also shows that people still have faith in the currency even after such a huge correction. Yes, I am pretty sure new investors are worried and might have already sold. But those who are in the market for quite a while now are HODLING.
Why do we say that decentralization is the future?
Tell me below which trading app do you use for crypto. I am pretty sure it will be Binance, Coinbase, or some other centralized application. These apps are good and have a lot of features, but they were not able to handle the pressure during the sell-off on Wednesday. All apps went down, and anyone who wanted to buy crypto wasn’t left with much of a choice. But the decentralized applications like Uniswap, Sushiswap, Pancakeswap, and other popular ones were functioning as designed. They didn’t go down even for a single second during the entire crash.
Uniswap had a trading volume of $6.3 billion on Wednesday, which is $2.6 billion more than Coinbase’s 1st quarter average. It had such a high pressure but did not disappoint us. Other DeFi platforms also were working smoothly. This is in sharp contrast to what happened to national exchanges due to the GameStop long position by Reddit users and short position by institutions. That was the time we understood that centralized applications had their own limitations.
What do you think about the Bitcoin crash that happened on Wednesday? And what does this prove to us about the future of blockchain technology? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Paul Krugman says, “Bitcoin can survive indefinitely.”
