The Crypto Hype Trumps Substance

How is it that the spoken word means so much in cryptocurrency? I mean, we are a community founded on technological innovation, an empirical science. For that reason, I find it unfortunate that investments are made completely blind. In the world of crypto, hype trumps substance.

Coinbase Addition Crypto Hype

For example, rumors have circulated between multiple coins being added to Coinbase. These coins are Ripple and Nano. In late February, the price of Nano saw a sharp spike in price with rumors of a potential Coinbase listing. All these rumors were based on was Garry Tan and Whatshisname meeting with Zach Shapiro and the other Nano developers. While this is an interesting piece of information, should it be worth a 100% price jump in one week? Probably not.

Now two weeks after these rumors, Nano has leveled off. As the hype dies down, the instinct to buy for the fear of missing out wears off. Was there ever concrete evidence Nano even had a 20% chance to be added to Coinbase? No. The community jumped on the bandwagon of Nano because it could be added to Coinbase.

Coinbase rumors send XRP from a Ripple to a wave!

From a Ripple to a wave

Enter Ripple. Ripple is the #3 coin, and it has been in the top 5 for a very long time. One of the hard requirements Coinbase and GDAX have previously stated in their GDAX Digital Asset Framework is decentralization. The exact way they word it is 'available to everyone and not controlled by a single entity.' Ripple is arguably the most centralized coin, as the company holds over 60% of the coin. For this reason, many people in the cryptocurrency have thought the addition to Coinbase seems unlikely. But, we see a rise in the price of XRP nonetheless.

Will either even be added? Is this crypto hype all for nothing?

While I know nothing more than you about which coin will be added, it's interesting to look at the psychology of it all. If this community as a whole can be swayed with a small scent of a Coinbase addition, who knows what something bigger will do to them.

So, I come back to my original point...crypto hype trumps substance. In the world of cryptocurrency, technological innovation is the driving factor. In fact, that's one of the main reasons there is a blockchain (see Ethereum's smart contracts). This is a good thing. The blockchain should be driven by new and innovative technological advancements.

Hype trumps substance.

But, in the world of investing in cryptocurrency, hype is the driving force. I've never seen speculation become so powerful in any space in my life. I circle back one last time, crypto hype trumps substance.

Thanks so much for reading! If you got something valuable out of this article, please feel free to share on social media! Stay tuned for more updates.

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Originally published at www.HonorableCrypto.com on March 5, 2018.