Cryptocurrencies – opportunities await

Market Updates

Published on 26 May 2022

By Tui Eruera, CEO and Founder of Jaaims

The correction we are currently seeing in cryptocurrencies is highly reminiscent of the dot-com bubble – and that spells opportunities for investors.

Think back for a moment to 2000. It was the year we saw the bursting of the so-called ‘dot-com’ bubble, when plenty of over-hyped and over-valued tech companies went down the tube.

Not surprisingly, plenty of investors had their fingers burned. And for some time, the tech sector was regarded as ‘on the nose’, and actively avoided by many investors.

However, in the aftermath of the dot-com bubble, a remarkable thing happened. A number of companies emerged from the tech wreck that have gone on to change the world.

I’m talking Google, Amazon, eBay and others that have become household names – and integral to our lives.

What does this have to do with cryptocurrencies? Plenty

There is no arguing that digital currencies are currently experiencing a significant correction. And it could have further to go.

Based on the last major crypto correction we saw in 2018, it is not unrealistic to suggest that Bitcoin, which is currently trading for about $US29,700, could drop to $US10,000 over the next three to six months.

Ethereum could fall to $US900, down from its current trading value of $US1,980.

However, we could see some positives emerge from the rubble.

The spectacular collapse of Terra stable coin for instance is likely to drive greater regulation in the cryptocurrency market. This would certainly give digital currencies much-needed validation.

It is also highly likely that thousands of smaller cryptos will fall by the wayside, in much the same way many start-up tech companies fizzled out when the dot-com bubble burst.

Again, that is not a bad thing. The sheer volume of digital currencies available at present does little more than bring the entire sector down.

It will also leave investors with premium currencies and projects.

The picture is bigger than this

The aftermath of the dot-com bubble hailed the arrival of Web 2.0, and the incredible growth of internet applications that have transformed the digital era.

At Jaaims, we believe the current crypto correction, coupled with incoming regulation driven by the unpegging of Stable coins, could be the catalyst for significant change. It will underpin Web 3.0 becoming mainstream in society, driving a new iteration of the internet based on blockchain technology. And it will reshape our world in much the same way Web 2.0 has over the past 20 years.

The upshot is that right now we are seeing what may be the last opportunity to pay low prices for some select quality assets in the crypto space – businesses that have the potential to change the world.

Quality crypto assets coming soon

Later in 2022, Jaaims will step into trades in exchange traded funds that focus on digital currencies. A little further down the track we plan to bring direct cryptocurrencies into the mix.

It is worth highlighting that this initiative will be backed by significant research and filtering by Jaaims team of analysts. We are committed to only investing in those cryptocurrencies that will be relevant and beneficial to society.

It means exciting times ahead as we bring a unique combination of artificial intelligence plus in-depth research and clear goals to investors eager to seize the opportunities offered by the strongest of cryptocurrency business models.

*Any advice provided is general in nature and does not take into account the viewer’s specific needs and circumstances. You should consider your own financial position, objectives and requirements to determine the type of advice and products to best suit your needs. Jaaims Australia is an Authorised Representative of Jaaims Technologies, AFSL 519985.

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