VC Investor Explains Reasons Why Crypto Fell 80% in 2018
According to prominent venture capital investor Chris Burniske, the crypto market fell by nearly 80 percent in 2018 due to the lack of adoption of major digital assets. Throughout 2017, Bitcoin, Ripple, Ethereum, Bitcoin Cash and the majority of cryptocurrencies experienced a rapid increase in their valuation, recording 1,000 to 30,000 percent gains within a 12-month period. Yet, in the past eight months, the valuation of the cryptocurrency market fell from $900 billion to $195 billion, more than 78 percent. Crypto Price Surge Wasn’t Proportional to Adoption The value of cryptocurrency, similar to fiat money and reserve currencies, solely depends on its ability to operate as a robust and efficient medium of exchange. Cryptocurrencies like Bitcoin and Ether, the native currency of the Ethereum blockchain protocol, are valuable because investors can trade them for alternative assets and currencies, in markets with high liquidity and user activity. Despite having seen 100-fold gains
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