What are the logical and evident reasons why the cryptocurrency market has been down for so long?
A series of bad news and regulatory threatenings!
First of all, it hasn’t been for long. The dullness has only been for 3 months.
The downfall has not been limited to cryptocurrency, last week the US stock market saw biggest fall since many years. The world’s richest 500 people lost more than 500 billion dollars.
The problem with cryptocurrency is that it is still in a very nascent stage. People who don’t even understand anything about crypto or markets in general have put whatever little savings they have, so even a little negative news makes then panic.
The cryptocurrency market tried to rebound many times in the last couple of months but it was deliberately suppressed by news from Coinbase and few regulators.
There are some reasons:
- The value of cryptocurrency or cryptmoney is extreem volatility can be up like rocket or be down like river stream thats why many people who need cryptmoney for currency or safety investment still looking worried wether their money burnt.
- Most authorities also looking crypmoney issued by technology (means without the role of money authority) is high risk for financial stability the main reason that cryptmoney is issued without any clear underlying assets.
- There are also evidences for cryptmoney hacker and thieves accident such happened to Bitcoin and Ethereum. This make cryptmoney become riskier to buy or invest.
- There are also some dispute and claim related transaction that are difficult to settle when there are mostly no authority can be responsible.
- There are still home work for cryptocurrency to be widely accepted and become global player.
Posted 7 Months ago
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