The bursting of the much-feared cryptocurrency bubble is hurting the crypto sphere. For Hoskinson, the industry has enough strength to survive.
A wrong time to spend
Cardano founder compares crypto crash to Game of Thrones. Bitcoin is collapsing, Terra has lost 99% of its value, and the crypto sphere is starting to question itself. But while the big enthusiasts regret their latest investments, some still see the fall of cryptocurrencies as a normal phenomenon. Charles Hoskinson is one of them.
Far from worrying about the situation, the founder of Cardano posted a benevolent message on his Twitter account to investors starting in the crypto sphere. For him, the problem is akin to the dreaded Winter in Game of Thrones. A real plague in George R. R. Martin’s series: some significant figures will fall, others will fight, but in the end, spring will return, and the survivors will be strong enough to rebuild the industry.
If this is your first cryptowinter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder https://t.co/R1QMF0NgRI
— Charles Hoskinson (@IOHK_Charles) May 12, 2022
To comfort Cardano holders, whom he considers “tender children of summer,” Hoskinson says he has witnessed several crypto crashes in a decade. Usually, it’s only a matter of a few weeks before prices reach the ceiling and the values of all the tokens rise again. Resilience and patience will undoubtedly benefit Cardano, with a founder who keeps a cool head. Perhaps the company and its currency could survive until the good weather returns.
Crypto crashes: a common phenomenon
Cardano’s founder is not wrong: this is not the first time the industry has seen its various prices fall. Bitcoin, for example, sees its price fluctuate yearly despite a significant gain in value over the past five years. Proof that Bitcoin has always been able to rise again when facing a downward trend.
Recently, Bitcoin dropped below $30,000, thumbing its nose at investors who predicted it would reach double by the end of the year. As Charles Hoskinson points out, we’ll have to wait until it hits bottom to assess the damage.
In 2018, Bitcoin lost nearly 80% of its value during the year and Ethereum more than 30%. A sharp drop that had not prevented investors from buying coins en masse once their price stabilized. Following this, crypto had only the sky as a limit, and the phenomenon will undoubtedly occur again.
In any case, the industry’s leaders and analysts remain somewhat confident in the future of digital currencies, although the situation is far from settled. Indeed, Bitcoin could still hit $20,000 before it recovers.
As of now, it is the crypto-currencies that have the most to lose. Despite this, Bitcoin is showing divergent strength despite being a volatile asset. Ultimately, Bitcoin and Ethereum should come out on top, but not overnight.
Mike McGlone for Yahoo Finance