I have been on this platform for only a few weeks but I have been blessed with the best minds who tend to help me out with all the confusing questions I usually have. For this, I am immensely grateful.
I remember just a few weeks ago when I felt like the entire lingua on the crypto-verse seemed a bit confusing and daunting but was most generously put in the right direction by @forexbrokr and @belemo who seemed to be extremely versed on the subject matter.
I also appreciate the good counsel I get from the amazing Hive and Leofinance communities, and just recently @readthisplease reiterated how important for people with the intention to learn a lot more about the crypto-sphere to inculcate the habit of reading a lot more, and Leofinance posts are superb in this regard as they are witty, expository and entertaining.
Since the turn of 2022, I have constantly heard fellow newbies constantly complain about how the value of their wallets have been on the descent and I decided to make a post on some of the possible reasons this could be happening and what are the right actions to take in situations like this.
Most of the submissions made in this post are mainly based on my opinion and the opinions of some articles I have read in the build-up to writing this post and shouldn't be considered as financial advice of any sort.
The Bitcoin and Ethereum effect
Source
Bitcoin and Ethereum at the moment are the giants of the cryptocurrencies and most times a rise or fall in the value of these tokens generally affects the market at large as we can see at the moment.
Bitcoin and Etheruem reached their all-time highs last year of about $70,000 and $4,900 respectively, but have started the year a little bit lazily and stand at about $42,000 and $3,200 respectively as at the time this post was written courtesy of Messari.
The value of these giants tends to have a ripple effect on many other tokens as we can tell by the recent drops that we are experiencing in our wallets.
Personally, I think this is a good time to invest in the Leofinance and Hive tokens as the tide would change soon and we would all have our smiles replaced and hopefully even broadened.
Kazakhstan's Internet Shutdown
The Central Asian country has experienced some unrest in the past week that has seen security operatives almost completely shut down internet connections in the country to help restore peace in the troubled Nation.
The significance of this news in the cryptocurrency market is knowing that Kazhakstan is home to Bitcoin mining as their coal mines have proven to be a good energy source for miners since China almost completely evicted them in May 2021.
So, the shutdown of the internet connection drastically affected the mining process in the nation and knowing the effect Bitcoin has on the general market, it translated into a generally bearish market.
Tesla's Stance on accepting Bitcoin and the consequential Bitcoin Magazine open letter to Mr Musk
Source
Tesla CEO Elon Musk had earlier stated in February of 2021 that its company would begin accepting the cryptocurrency for purchase of some of its merchandise joining the likes of Microsoft, Starbucks, Paypal etc. but went back on his word in July 2021 as a result of some energy concern.
Bitcoin Magazine recently sent Mr Musk an open letter as to why his company should reconsider their stance on the currency stating some cogent points as to why they should always be considered a form of transaction for the electric car giants and many other electronic transactions.
This report could also have an effect on the crypto-sphere and only time will tell how this plays out.
The open letter Bitcoin magazine written to Mr Musk can be seen here.
Conclusion
Generally, the crypto market is constantly filled with erratic movements going up and down every now and again. However, the Hive and Leofinance tokens have shown a lot of promise and have even been predicted to do many great exploits in 2022.
As for me, I would try my best to continue stacking and holding as much as I can in these seemingly dark days because I can definitely see light at the end of this dark tunnel.
Thank you for stopping by
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