What’s the value of cryptocurrency

The billionaire said a few years ago that cryptocurrencies can bring people enjoyment akin to playing golf or casinos. Now he notes that reckless investment in digital assets without proper risk management can be dangerous. Here’s his quote.

If you enjoy looking at your monitor all day and making a lot of money on cryptocurrencies, allocate enough money to them so that if you make a loss it won’t be the end of the world.

Billionaire David Rubenstein

According to Rubenstein, the main audience for the crypto market remains young people with libertarian views between the ages of 20 and 40. He continues.

Now, I am confident that cryptocurrencies will not disappear in the way that some people imagine. You could argue that in some aspects crypto is worthless, but many of the things people buy are probably worthless too. I would say that many people have a libertarian outlook on life, and they tend to like crypto, which is a kind of anti-government paradigm.

According to CryptoPotato’s sources, the billionaire doesn’t think that efforts by governments or central banks will somehow stop the growth of the crypto market, which started back in early 2021.

Having an investment in cryptocurrencies makes you feel better about yourself because you can have something that is outside of government control and not dependent on a bank opening its doors to you.

Bitcoin exchange rate

That’s probably the main value of digital assets – the appeal of decentralisation and independence. This really appeals to the younger generation of investors, who are proving to be the driving force behind bullruns. Already for them, the big platforms and organisations will create the right infrastructure and also go into dialogue with financial regulators.

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Unfortunately, the prolonged bearish trend has not escaped almost every aspect of the industry, including cryptocurrencies. According to the CoinATMRadar platform, the number of machines installed fell from 38,776 to 37,980 last month, the equivalent of a 2.05 per cent drop. For the first time in the history of the crypto market, almost a thousand crypto machines were disconnected.

Apparently, novice investors are now avoiding cryptocurrencies because of the collapse phase, so it's probably not profitable to maintain such devices. Still, the earnings of cryptocurrencies lie primarily in commissions. And if there are fewer transactions, the companies' revenues also fall.

Crypto machines installation dynamics

In addition, since the beginning of this year, there has been a significant decrease in the rate of installation of new cryptomats.

Increase in the number of crypto machines over time

If you consider the 60-day average, there are approximately 14 cryptomats installed per day worldwide. The largest producer of machines is Genesis Coin – it has installed 40.3 percent of the devices in different regions of the world. The top three market leaders also include General Bytes and BitAccess.

Major crypto machine makers

Although the pace of crypto installation has temporarily slowed due to external factors, countries continue to show interest in the availability of such devices within their borders. On the eve, Japan decided to increase the number of cryptomats for the first time since 2014. Initially, they will be installed in Tokyo and Osaka. Local company Gaia Co. plans to install 50 cryptomats across the country by August 2023.

And while the situation with cryptomats leaves much to be desired, another drop in the price of Bitcoin below $20,000 has triggered another round of capitulation by cryptocurrency holders. This was stated by analysts at the CryptoQuant platform, who cited a surge in BTC inflows to exchanges in their latest report. The bulk of the sellers are those investors and traders who bought their coins between April 2021 and April 2022.

Why Bitcoin fell

Coin inflows to exchanges from a particular category of market players can be gauged from the Exchange Inflow Spent Output Ages Bands (SOAB) indicator. It displays not only the total influx of coins to the trading platforms, but also the time of their last transaction – from 6 to 18 months. Here’s a quote from an Edris analyst on the subject.

Looking at the chart, it’s obvious that coins bought 6-18 months ago are being actively traded recently. These bitcoins were purchased between April 2021 and April 2022 at a price above $30k. This means that many holders who entered the market during the 2021 bull run and surpassed the mark have recently capitulated and left trading with losses of around 50 percent on their positions.

SOAB indicator

According to the Cointelegraph, a capitulation of this magnitude is a clear sign of the bottom of a bearish trend. The only question is where the final support for the market will be and whether Bitcoin will drop to the $17,600 low set back in June. Here’s the experts’ commentary.

This kind of capitulation is characteristic of the last months of a bearish trend. That is, it indicates the potential formation of a bottom in the near future.

Another research platform Glassnode has also published the Spent Output Profit Ratio (SOPR) metric. The SOPR divides the price paid for a certain number of BTCs by the price at which they were sold. The resulting figure fluctuates around 1. Values lower than this indicate a bear market, as investors incur losses.

SOPR indicator

As of September 29, the SOPR was hovering around 0.95 points and is aiming for 1 again. A bottom may have been reached for Bitcoin over the summer, analysts said.

However, there is more to the industry than just negativity. The day before, 33 senators in Paraguay rejected President Mario Abdo Benitez’s veto of a major bill to regulate Bitcoin mining. Recall that in July, the country’s legislature approved a bill to create a clear tax and regulatory framework that would allow miners to have confidence in their position and business in the country. President Benítez then vetoed it, claiming that mining consumes large amounts of electricity but allegedly brings relatively small employment benefits.

Paraguayan President Mario Abdo Benitez

However, the officials’ vote shows that the senators are determined to regulate the industry, which is currently operating in a legal grey area. According to a statement from Paraguay’s Congress, one of the lawmakers, Senator Enrique Salin Buzarkis, said it was “better to formalise” the industry to be able to tax it.


We believe that adequate regulation of the cryptocurrency industry would indeed be a catalyst for its further development. In the meantime, investors will have to go through a phase of declining rates and blockchain platform activity, which will end one way or another. In addition, as Rubenstein notes, the potential of digital assets is already sufficient to attract the attention of vast numbers of users around the world.