What is Vertcoin?
Vertcoin was one of the few emerging peer to peer digital currencies. It was rising faster than Bitcoin, and many said it could surpass Bitcoin in value. At one point, the Vertcoin went from $0.73 each to $6.19 each, a high percentage increase that was impressive even for people used to cryptocurrencies volatility. This was part of Vertcoin’s history, tearing up the charts with over 300% price increases, and many people had high expectations for this Anti-ASIC currency. However, as things happened Vertcoin lost value and in the end Bitcoin remained on top.
The reason Vertcoin lost value is because the supply outweighed the demand. While the demand stayed the same if not decreased, the supply was coming in from all the miners mining the back then profitable Scrypt-N algorithm. Merchant adoption was not doing so well with Vertcoin and eventually, the selling pressure from all the miners caused Vertcoin to go down from $6.19 to currently 0.99 USD. For anyone that purchased Vertcoins back in the day, that is one hell of a loss. After such a long and hard crash many investors do not feel safe investing in Vertcoin as there is no upward momentum.
It does not take a seasoned day trader to know that investing in something that is going to depreciate 400% and not rebound is a bad idea. All these factors are what caused Vertcoin to fail as a digital currency. Also, Vertcoin has lost much of its value because other coins were getting all of the attention and stealing the spotlight away from Vertcoin. You may think there are enough investors for alt coins but that is simply not true, the liquidity is constantly declining, and if investors are constantly falling prey to scams and pumps and dumps, no new players join and existing players simply give up.
Vertcoin’s downfall
There is something to learn from the downfall of Vertcoin and that is that all currencies have a high point and a low point. You need to know if your investment is going to fall or is going to move on up or stay stable. Figure out facts that would cause a currency to remain calm. For example, Bitcoin recently had a record amount of transactions and large companies like Google and Facebook are thinking of using Bitcoin to pay people and accept payments in Bitcoin as well. Furthermore, The New York State Department of Financial Services (NYDFS) is working on forming the worl’d first BitLicense, which would enforce regulation on large bitcoin companies and help bring bitcoin to the mainstream. Mass adoption, combined with regulation equals stability. Constant market manipulation followed by scams is the reason for huge price swings and crashes in altcoins.
Most people believed that Vertcoin’s value increase was due to hype and wouldn’t last, that school of thought scared away many investors. Most of the Vertcoin investors ended up being speculative traders which looked for short term profit. Vertcoin is not the only victim to day traders, many new coins suffer major dumps after so called “investors” mine the newly launched cryptocurrency while the difficulty is low and once the coin comes onto the exchanges they dump their bags on to the “investors” who think they are buying the coin at a good price while in reality they are the sheep.
Take time to research before any investment so you know you are going to be able to have a decent chance of making a profit, or at the very worse, break even.
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our email newsletter!
No Responses