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The cryptocurrency market has seen huge losses in recent months, and some experts believe that further destruction is on the horizon.
Peter Smith, CEO of Blockchain.com , believes that there will be even more destruction in the field of cryptocurrencies. He said this while commenting on the recent collapse of Terra.
During a Interviews with CNBC Smith explained that due to the nature of some projects, more destruction is expected in the cryptocurrency market. However, he believes that this is a positive thing for the decentralized economy in the long run.
He advised cryptocurrency investors to use the techniques used by the traditional financial market investors, the dollar-cost averaging. This method allows investors to slowly build a position in an asset over time, so that all their money is not exposed to a single surge of fluctuations. Smith said:
“Get in slowly. Worldwide stock exchange. And you have to be prepared to hold it for quite a while. Because we are still at the initial stage of building this whole financial system.“
Blockchain.com is one of the earliest cryptocurrency exchanges in the world and was founded in 2011.
The cryptocurrency market has developed massively below average in recent months. Last week, Bitcoin reached an annual low of $26,000 before recovering slightly and remaining around the psychological level of $ 30,000.
The collapse of Terra wiped out billions of USD from the cryptocurrency market within a week. LUNA, the native token of the Terra ecosystem, was one of the top 10 cryptocurrencies by market capitalization a few weeks ago.
However, it has lost its position and is currently not in the top 100. UST, the stablecoin of the Terra ecosystem, was also decoupled from the USD, resulting in a loss of billions of USD by investors.
At the time of writing, the total market capitalization for cryptocurrencies is over $ 1.2 trillion, which is a decrease of more than 50% from the all-time high of $ 3 trillion recorded in November 2021.
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