Bitcoin Getting REKT – What Does this mean for Decentraland and Other NFT Projects?
Posted On March 13, 2020
What a day.
We saw ~$3,800 USD Bitcoin in a ‘flash crash’.
The question for Decentraland and other NFT project Investors is…did I get rekt too?
Bitcoin Behaviour & NFT Correlation
There’s pro’s and con’s of NFT projects being connected to big brother Bitcoin.
The publicity Bitcoin gets on moves brings attention which usually ripples out to the whole ecosystem.
But when it goes south, everything follows.
MANA touched 300 Sats and currently sits at around 380.
In $ it’s around $0.02
Considering we were at $0.07 we can truly see the extent of what Bitcoin can do to project momentum.
Is this Bad or Good News?
I’m using Decentraland as an example but really, am talking to the whole NFT space.
Bitcoin going $10k+ is great but…seems to take all the attention away from alts and other NFT projects.
Crypto is a place where $ moves around daily. Where the spotlight is, the money goes there.
At $10k+ we usually see NFT volume slow down as people watch BTC and hope to ride the wave.
One of the BEST years of Decentraland was in 2018.
When Bitcoin went from $20k USD to $4-6k USD.
Bitcoin in 2018
MANA in 2018
While Bitcoin slowly fell, Decentraland and other Alt Coin projects thrived.
Maybe because people jumped off the Bitcoin hype train?
Maybe because the excitement moved from Bitcoin to NFT/alt projects.
Whatever it was, the opposite happened in 2019 as Bitcoin Went Up
Bitcoin in 2019
MANA in 2019
So what happened here? Bitcoin up, MANA down.
Again, it’s about WHO is in the spotlight.
So BTC going down for me…I actually don’t have a problem with it.
We are still seeing Decentraland Land Sales
People will still keep making cool Crypto Art
Other NFT Projects will continue holding Pre-sales
Best thing about NFT projects is that they have a visually VIRAL appeal and when this hits social media – it’s hard to scroll past how cool these are.
Compare this to a ‘Bitcoin is now accepted in blablabla tweet’.
The bottom line is, people will keep injecting value into this NFT ecosystem and create cool things because…they can and want to test the boundaries of blockchain.
So short term, yes it looks bloody but as long as projects keep creating, (that’s why I mostly invest in well funded projects), in my opinion they will keep growing and attracting users.
Regardless of Bitcoin Price.
But then again….this is crypto, the most volatile financial space in the world so anything can happen!
What If It Goes Terribly Wrong?
If Bitcoin continues to crash, it’s going to remove a lot of speculating community members who are part of these projects.
Good and bad thing.
Speculators bring in price and funding.
They create price hype which brings news which brings people and ultimately grows the ecosystem.
If they disappear than it will be up to Decentraland or other NFT projects to prove their worth.
Build cool things, attract people because of the desire to create which will in turn built its own, hype-free ecosystem.
If this happens, expect a much longer ride.