Right before the peak in May, a report appeared about Gen Z and its investment habits. Of course, when younger, everyone tends to follow the hype and investing knowledge is very weak. The result is losses as most investors will be buying the top of the hype of these assets.
The report claims that almost 25% of Generation Z in the US had invested in meme coins like Doge. (Source)
So, the youth is attracted to memes and fancy opportunities after reading about those that got rich quick investing in Doge, Shiba Inu, and other pointless meme coins of the crypto market.
The hype never lasts and currently, all Doge and Meme coins after they attracted the maximum they could, are now falling apart and losing 25-30% every week.
The Dogecoin hype initiated by non-other but Elon Musk, has also caused damages to investors that thought Musk could pump the price of this pointless asset to $1.
Shiba Inu is at a similar spot and all the rest of Doge Coins are meeting their end soon.
I've written two posts warning everyone about Dogecoin, right when it was peaking at price, and currently Doge is down by 68% since its ATH.
I've written both these articles right before the market crashed and lost more than a trillion USD in total market cap.
I would expect Dogecoin to retract by 95% more before it finishes its current consolidation cycle.
The price of Dogecoin will eventually go back to where it started since this coin has zero use case. In previous years it was used by some obscure websites (faucets) and I was also using it to transfer dust from exchanges. But when its fees reached $2 it became worthless to use.
Preice of Bitcoin Cash didn't held well either though.
There was almost zero hype on Bitcoin Cash, and I think that many preferred it this way, but I am still expecting to close down the gap with the BTC pair. One day the market will stop being extremely irrational and most investors will finally understand the fundamentals behind each coin.
I've talked about Bitcoin Cash a lot so far and why it is one of the final hopes for cryptocurrency's massive adoption. I will not stop supporting software with developers that understand what is required according to the needs of the populations.
I consider the main reasons for Bitcoin Cash rapid decline in price to be:
Tether
the BTC trading pairs
It makes no sense to have this much utility in a network and losing so much price just because Bitcoin is found to be polluting and not working as a network.
Stablecoins are not used to support Bitcoin Cash in any exchange. Binance, Kraken, and possibly Coinbase too, they'd allow Bitcoin Cash to plunge and not spend one tether to support price. Selling is automated since trading bots are set to support just BTC when the market experiences a crash.
This is also the reason the dominance of BTC increased lately back to over 40%. The spread between BTC and BCH has increased a lot due to the stablecoins. I'm still expecting this to change in the future, but for the time being, I'm waiting for more developments and an increase of user base for Bitcoin Cash, as what I see is more people using BCH and abandoning other more expensive options.
Any bearish trend can only be countered with development and increase of utility. The more the merchants that adopt Bitcoin Cash the better for the network. Also, the developments as SmartBCH, and on chain proposals with an aim to improve DeFi applications infrastructure will certainly help Bitcoin Cash grow.
Writing on the following platforms:
● ReadCash ● NoiseCash ● Medium ● Hive ● Steemit ●Vocal ● Minds
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Source of Lead Image: Unsplash by Mohammad Asadi
Glad we have you here who do not withhold telling the truth!