Being “decentralized digital”
currencies, cryptocurrencies make use of blockchain ledgers for recording and
validating transactions. Bitcoin,
the first cryptocurrency to be introduced in 2009 was followed by the
introduction of more than 900 such currencies to date.
currencies, cryptocurrencies make use of blockchain ledgers for recording and
validating transactions. Bitcoin,
the first cryptocurrency to be introduced in 2009 was followed by the
introduction of more than 900 such currencies to date.
As of March 21st, 2020, an investor was taken by surprise when he noticed that around 99% of his
investment in his selected fund worth USD$250,000 was “wiped out” following the
market meltdown due to coronavirus meltdown.
investment in his selected fund worth USD$250,000 was “wiped out” following the
market meltdown due to coronavirus meltdown.
The investor went on to say that he
was not aware of what actually happened. Explaining the status of the fund he
invested, he said that probable cause of the “wipe-out” might have been due to
the fact that although the fund had a leverage position way back in the month
of March, however, due to crunch in liquidity and the fact that the sell orders
were rejected prevented the cryptocurrency from performing well.
was not aware of what actually happened. Explaining the status of the fund he
invested, he said that probable cause of the “wipe-out” might have been due to
the fact that although the fund had a leverage position way back in the month
of March, however, due to crunch in liquidity and the fact that the sell orders
were rejected prevented the cryptocurrency from performing well.
As such, the investment he made lost
99% of its value when the economy started manifesting slowdown due to the coronavirus impact.
99% of its value when the economy started manifesting slowdown due to the coronavirus impact.
The coronavirus economic mayhem
The algorithm of the fund plunged when
the market nosedived. Although, the managers tried their best to tackle the
situation but were met with disappointed due to lack of liquidity and also due
to the rejection of sell-orders. This caused the crypto exchange to auto-liquidate positions
then.
It may be mentioned here that cryptocurrency exchange, also known
as DCE or digital currency exchange allows traders and customers to trade their
selected cryptocurrency funds or any other digital asset that they hold and
are keen on trading.
as DCE or digital currency exchange allows traders and customers to trade their
selected cryptocurrency funds or any other digital asset that they hold and
are keen on trading.
The scenario of crypto funds during coronavirus impact
During the same period, many
investors were caught unaware when many crypto funds and bitcoin news
were flooded with facts about how these digital assets or cryptocurrencies shed
almost a third of their value and more owing to the pandemic.
An average of 26% on funds were lost
and it was recorded as the second-worst loss that occurred since the year 2015.
This was confirmed by hedge-fund researcher HFR.
and it was recorded as the second-worst loss that occurred since the year 2015.
This was confirmed by hedge-fund researcher HFR.
Experts were also of the opinion that
the above implication is “an understatement” of the economic bloodbath across
the board of digital assets.
the above implication is “an understatement” of the economic bloodbath across
the board of digital assets.
As compared to other conventional
hedge funds, the digital currencies fell behind in performance. The
conventional hedge funds suffered an average loss of 8.4%.
hedge funds, the digital currencies fell behind in performance. The
conventional hedge funds suffered an average loss of 8.4%.
However, the scenario is not all that gloomy
since thereafter, the cryptocurrency and bitcoin markets have improved
remarkably since the mayhem way back in March. As such, cryptocurrencies have
registered an upswing of more than 13% in the current year.
You write this post very carefully I think, which is easily understandable to me. Not only this, but another post is also good. As a newbie, this info is really helpful for me. Thanks to you. online community for cryptocurrency investors