We must “dedramatize the fall of bitcoin”, say Latin American bitcoiners

The bear market of bitcoin (BTC) and cryptocurrencies has also spread to the traditional market and this is because the currency “managed to hack the traditional system, managed to get in and now it is who controls part of that volatility that those assets are having,” said Iván Tello, co-founder of the Argentine exchange Decrypto.

Tello participated in a virtual activity called “How to survive the crypto winter“, organized by the Ibero-American Blockchain Alliance for this May 20. The meeting was moderated by Mauricio Tovar, from the Blockchain Association Colombia. It also had the participation of Rodolfo Andragnes, from the NGO Bitcoin Argentina; and Matías Bari, CEO of SatoshiTango.

There, the executives shared their experiences in relation to the bear markets that bitcoin has experienced throughout its history. On this, Tello expressed that it is important to “dedramatize” the fall of bitcoin and gave as an example, that this Friday May 20 the shares of the MercadoLibre company fell more than BTC itself.

“Cryptocurrencies follow international patterns and these drops in prices are the consequences of the dizzying increases of the past”, indicate Tello.

In that sense, all the panelists admitted to having suffered from the previous bearish periods, and having lost some money“ “until they understood how the market works”.

According to Tello, anyone who is “uncomfortable” today due to the market situation “is because they overleveraged or oversold.” On the other hand, he also pointed out that exchanges “have part of the blame” for the lack of preparation they give to users.

All panelists advise investors to “become aware” of bitcoin and the market to be able to trade comfortably. “Weak hands can’t stand having bought at USD 50,000 and now they sell, they panic.”

Andragnes and Bari recalled that the cryptocurrency has experienced several winters that have lasted for up to a year. They all acknowledged having lived through difficult moments, those in which they wanted to capitulate. “In 2014 it was my first hard fall, my first long winter, I had a hard time,” Tello said.

Winter was inevitable

Winter, for the purposes of the market, refers to a prolonged bearish period. In that sense, Tello commented that he is “a believer in cycles and winter is one, it was going to arrive anyway.”

For Bari, it is important to understand the market cycles and be prepared with your feet on the ground for both up and down periods. “Winters have their interesting side because they represent an opportunity for flimsy projects to fall apartend up going broke and the best ones will be left.”

In that sense, Tello said that that weak project may have been the terra USD stablecoin (UST) and terra (MOON) or any other. Tello made mention of Terra precisely, because it was one of the projects that fell miserably in recent days.

As reported by Criptonews, Terra collapsed due to a decoupling in the price of the UST stablecoin with respect to the US currency, dragging down the rest of the market, prolonging the well-known winter.

The issue of the UST stablecoin, was conducive for the decryptor to indicate that, although the market continues to register a fall, he sees a significant adoption of this type of digital assets, especially by companies from Argentina and Peru, countries where the exchange he runs has its largest operations.

“I insist, the growth and adoption continues to grow at a fairly accelerated pace beyond the fall in the price of bitcoin,” he commented.