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How to Survive the Cryptocurrency Bear Market

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Cryptocurrency Bear Market

Even with all the encouraging news coming out about blockchain technology and its many use cases that are in the works (but have yet to be realised) and the many advances to this technology that is on the verge of breaking through it is clear that those positives have had little effect on the cryptocurrency bear market we are now in. With the recent news about the SEC refusing to approve a Bitcoin ETF, markets have dropped once more, and it seems that we could be seeing this bear market for a while longer.

Surviving the Cryptocurrency Bear Market

If you are a survivor this news will not bother you as you know that the longer you stay in the game the better your chance of coming out on top. This is not to say that if you have made a bad investment that you should stay in it hoping to recover your loss (only to lose more), but rather that smart investors know that new technologies, new markets, and new investment types will have a lot of ups and downs. Those who stay in it and spread their investments evenly over projects they have researched and investigated to find viable options that point toward bright futures will be the ones who come out on top.

BTCWe’ve been through a lot and we will surely go through a lot more, but slow, smart, and steady investors will recognize that the corrections we see are not the enemy. Cryptocurrencies are hard to evaluate as they are not equity, not stock, but a type of currency in most cases. There are so many potentials for bitcoin but until this currency can be used worldwide (and there is still a lot of infrastructures that need to be built before this can happen) there are only the speculations of others about the future to give value to these efforts.

Many investors have a bias where only successes and “get rich quick” stories inspire them to invest, and they do this without thinking about what their investments mean for the space. Stories about Lambos that vault people to the moon are always inspiring but the reality is that the cryptocurrency market is a difficult and frustrating landscape to maneuver.

Back in the 1880s, many people traveled great distances by horseback, traveling through many perils and torments to make it to Eastern Transvaal where they heard that men could stake a claim and strike it rich. Those that struck it rich knew that the secret was not to give up when they didn’t find a mountain of gold their first time out, or their second, or their third. Those that did well knew that staying in the game would be the key to finding wealth, and that is the same survivor skill that those long-term investors in this new technology will have to show.

Those Who “Survive” Will Potentially Be Rewarded

The hard grind that will have to be faced before cryptocurrency is accepted and adopted by the rest of the world will wash more than a few people out of the space, but for those of you who have the will to survive take heart because there truly are great things on the horizon for cryptocurrency and the blockchain. Survivors will be those dreamers who have a well thought out cryptocurrency investment strategy, understand the potential for this technology and are willing to believe in it when no one else will.

More and more people, governments, corporations, and countries are seeing the benefits that will come with the advent of this technology while billions of dollars and the sharpest minds are being put to work to solve things like scalability, and new applications are being introduced all the time that will make this technology the most important thing to happen since the advent of the internet itself.

If you are a survivor, you will research all of those use cases, applications, and new technologies that will be built onto the blockchain and trying to understand what makes things tick so that when you make another long-term investment you will know it is one with real potential and not another flash in the pan. Be a survivor and come with us into a new horizon.

 

This guest post was contributed by Chris Douthit. Chris is a stock and cryptocurrency analyst who’s worked in both finance and technology for nearly 20 years. With his insight and technical analysis, he achieved a 2000%+ return in the cryptocurrency space in 2017. Today his training and research center, CryptoInvestingInsider.com, is quickly becoming the go-to website for investors looking to fast-track their success. 

*Readers should do their own due diligence before taking any actions related to the mentioned company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this guest post.*

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Almost a Quarter of High-Tech Consumers in South Africa Now Own Cryptocurrency

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High-Tech Consumers in South Africa

A new study titled “Digital Lifestyle Measure report” conducted by MBIT found that 23 percent of high-tech consumers in South Africa own at least one cryptocurrency, with bitcoin being the most common holding. 

New Report Shows High-Tech Consumers Hold Crypto

In the”Digital Lifestyle Measure report” report, each level of tech consumer (high, medium, and low) was grouped according to DM segmentation. A high-tech consumer is identified and tagged as a “DLM5 consumer”, and for the low-tech consumers, a “DLM1 consumer” was used. 

To place each of the participants in the right groups, the survey made use of a question and answer (Q&A) method. Each person was categorised according to how well they were able to answer the provided questions. The questions mostly focused on their private digital lifestyle and technological gadgets they own and can operate well.

The result of this survey shows that only six percent of the low-tech consumers (DLM 1) own crypto, while 23 percent of high tech consumers own cryptocurrencies. The remaining percentage was then shared in the order: DLM 2: seven percent, DLM 3: twelve percent, and DLM 4: eight percent.

cryptoThe report also stated that of the DML5 population, about 42 perfect of them are of the notion that cryptocurrencies are here to stay. Same goes for 30 percent of the DLM 4 consumers group.

Conversely, 41 percent of the low-tech consumers (DLM1 consumers) did not know what cryptocurrencies are all about, according to IOL

From the DLM 3 consumer group, about 34 percent of them cannot say what the future looks like for cryptocurrencies but 26 percent of them claimed cryptocurrencies to be the “future of financial transacting.”

The report has further shown that high tech consumers who are continually paying for something electronically, are more likely to buy crypto in the long run.

Based on the google trends data, South Africa currently has the highest levels of interest in bitcoin across the world. Hence, it should come as no surprise that tech-savvy South Africans are the ones investing in digital currencies and tokens. 

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Ecobank Report: Most African Regulators Are Taking a “Wait and See” Approach to Cryptocurrency Regulation

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African Regulators

While there has been a substantial increase in the adoption of cryptocurrencies in Africa compared to three years ago, there has been minimal effort from African countries to try and regulate cryptocurrencies despite their increased use in various African nations according to a new report by Ecobank.

Ecobank tracked “the current state of cryptocurrency regulation in all markets in Sub-Saharan Africa” through the regulatory responses that have been issued by central banks or financial regulators. In the report, the pan-African bank found that most African regulators are taking a “wait and see” approach when it comes to cryptocurrency regulation.

The report stated: “Many African governments and regulators recognise both the risks and the potential positive impacts of cryptocurrencies, and some also appreciate the difference between cryptocurrencies and the underlying blockchain technology. But they have been reticent in authorising cryptocurrency transactions, and mostly remain apprehensive about the potential risks. African countries appear to be looking to their neighbours to regulate and innovate first, and learn from their mistakes, rather than being the first mover.”

The reported noted that the main reason why African governments were being skeptical about licensing the use of cryptocurrencies was their citizens getting overexposed to cryptocurrency investments and there being a future crash that would cause a ripple effect in the broader economy.

African Regulators’ Stance

African RegulatorsOut of the 39 jurisdictions surveyed, more than 21 countries in the region are yet to make a public declaration on the use of cryptocurrencies.

So far, there have been three countries that have taken a stance on cryptocurrency. Namibia tops the list having banned the commercial use of digital currencies. However, South Africa and Swaziland are the only two countries in Sub-Saharan Africa that have adopted “a generally favourable and permissive stance, but without full legality”.

The remaining countries fall somewhere in between and “refuse” to directly regulate cryptocurrencies claiming that bitcoin and other digital currencies “operate in the grey area between legality and illegality” and have issued warnings to their citizens and investors against using or investing in them. The bank also noted that conversations regarding the speculative nature and instability of cryptocurrency prices have overshadowed their benefits and the potential they bring.

The bank went ahead to note: “Unfortunately, the spectacular rise and fall in the traded value of cryptocurrencies has drowned out broader discussion on the potential benefits this new technology could bring. The transformational impact that could be delivered by tokenising products and services on the blockchain has been compared to that of the Internet. Crypto tokens and currencies could enable consumers to transact instantly, cross-border and for free, provide them with KYC-compliant digital IDs, and incentivise their behaviour and change the way they engage with governments & service providers.”

Ecobank will continue to track cryptocurrency regulation in Sub-Saharan Africa and provide regular updates that will reflect the regulation progress in the African nations.

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Paxful Continues #BuiltWithBitcoin Charitable Initiative in Africa with the Construction of a Second School

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#BuiltWithBitcoin

Peer-to-peer bitcoin exchange Paxful announced the newest chapter in its #BuiltWithBitcoin charitable initiative: the construction of a school in Rwanda – for students aged six to fifteen – in the Nyamata Sector of Rwanda’s Bugesera District. This will be the second bitcoin-funded school that Paxful has raised funds for.

bitcoinContinuing its partnership with NGO Zam Zam Water, Paxful has kickstarted the project with a $20,000 donation. The total construction cost of the school is estimated to be $100,000. The remaining balance, Paxful hopes, will be raised through its fundraising campaign.

Donations can be made via Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Dash.  Paxful will match all community donations until the $100,000 goal is met.

“The #BuiltWithBitcoin initiative is a testament to the power of cryptocurrency,” said Ray Youssef, CEO of Paxful. He added:

“We firmly believe that it can improve lives and make the world a better place.”

The planned school is expected to be almost twice the size of the first bitcoin-funded school and will serve up to 300 primary school students upon completion. Furthermore, the school will include a cafeteria, a 35,000-liter potable water well, solar panels for sustainability, and many other resources for the education and enjoyment of students, staff, and faculty, according to a company press release.

“Education is a crucial tool for helping those in developing nations increase their standard of living, so we are very pleased to partner with Paxful to serve these bright young students,” said Yusuf A. Nessary, founder and president of Zam Zam Water. He added:

“This is only a small glimpse into what we can and will continue to do with the power of cryptocurrency.”

Paxful began the #BuiltwithBitcoin initiative in 2017 to promote philanthropy and charity within the cryptocurrency industry. The company plans to construct 100 African schools, as well as donate money for wells and other projects.

To contribute to #BuiltwithBitcoin, send all donations to Zam Zam Water:

BTC (Bitcoin): 3Q5CESP85hhXTLSy2HDbSyNchb5Bi8D7ku
BCH (Bitcoin Cash): 15YGniLxo77kfMUWGoRNT6ShUQC93MvaXg

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