The Billion Dollar Dip

A few crypto sites carried news of significant liquidations nearly amounting to $1 Billion that led to a drop in value for Bitcoin and quite a number of alts. My initial reaction was indifference, but giving a bit more thought to it perhaps gives me a bit more reason for optimism. A Billion dollar payout daily in the crypto market means that lives are being transformed significantly as people take hold of their earnings.

Of course it isn't quite that simple. Liquidation doesn't necessarily come from turning in a profit and there are cases of people liquidating their assets simply to try and cover losses. There is also the precarious case of spread in terms of who gets what. We know that Whales and institutional investors move big volume and value, taking the lions-share of what may sometimes be a high value day. Nonetheless, the markets have provided opportunity for multiple Investors to seek and reap returns perhaps like never before.

Total market value today is around $2.4 Trillion, and daily trade volume is above $100 Billion. All these simply mean that the crypto space is in a relatively healthy position to offer some big paydays. The amount of new wealth that crypto has created for various households and communities probably would be better appreciated in the future when proper systems have been developed round its technology. I have often spoken about its sharing formula and low barrier for entry in the past which remains second to none and a driving force behind crypto success.

Our very own Hive has helped a lot of people already, despite being a minor player in the game. We might not have transformative liquidity yet but it isn't difficult to imagine the transformations if we eventually do.