The word Hype has always been lingering everywhere in our life from the shoes we wear to the cars we drive, we as humans always tend to buy stuff just to be a part of the trend. This word ‘Hype’ has to shock the world because it is an integral part of most of the 2 Trillion Dollar crypto market, from the 19 Billion Dollars market cap of NFTs to the 50 Billion Dollars market cap of Dogecoin, a meme-based coin that was created out of fun. Is the hype and market influence of some billionaires enough to sustain this crazy market cap in the long run or will the bubble eventually burst?
Why is Hype so influential in the Crypto Market?
Hype usually occurs in a market sector that lacks proper structure and purpose. The cryptocurrency was created as a way to fix the issues occurring with the crypto market but its purpose has grown unclear with times. Although more institutions like Mastercard, Visa, and even Apple started adopting cryptocurrency as a method of payment there is no proper framework yet as to how to integrate it.
Cryptocurrency in recent times has grown to a place where a single news or a billionaire’s tweet could rise or destroy your investment value. Recently a tweet from Elon Musk that Tesla will stop accepting Bitcoin payments and a news from PBOC that it will restrict crypto activities would make your investment reduce half of its value from its highest point $61,000 in the beginning of May. If you would recap a few days before Elon Musk’s appearance on Saturday Night Live would have given you the confidence that you have made the investment of a lifetime.
While we haven’t discussed the crazier world of NFTs where a single tweet of Jack Dorsey was sold for $2.9 Million. The problem is this tweet and influence that these people are advertising, is it going to be sustainable in the long run?
Is it Sustainable?
Well clearly the market has recovered with Bitcoin value as of today is sitting at $39,799, but whether the next day it’s going to crash again, we may never know. Obviously, there is a limit to where an influence and hype can get you, like the GameStop incident which eventually came crashing down.
It is funny to think that Dogecoin, a meme-based coin which is created as a joke and aimed to dig at investors who invested aimlessl on the Crypto space are having a $50 Billion Market Cap just because of a few tweets from Mr Musk. It is fine if you are amongst the few who invested early in 2013 but what if you are amongst the late ones?
The point is not whether you should invest in the crypto market, the question is whether you invest based on your own analysis and research or are you just following the trend? People need to realize that money they are investing in the crypto market is their hard-earned money that most of the time comes from working in the job. Do your own research before you risk the next $10,000 of your retirement fund to join in Mr Musk tweets. You could get rich with Cryptocurrency as long as you do sensible investing with proper research and proper entry and exit points.
We in Nagaya technologies have seen this pump and dump situation in the market and we believe that cryptocurrency and blockchain systems are meant for much greater things than this. That is where our Nagaya Coin was created with gold back up to tackle volatility issues of the market and running subsidiary projects to help increase and maintain its intrinsic value.
For More information regarding Nagaya Technologies and our Nagaya coin, you can kindly visit us at www.nagaya.io
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