The current state of the cryptocurrency market is a nerve-wracking one. The total market cap has been steadily declining for months, and many believe that this is a result of the SEC announcement that it will be regulating cryptocurrencies. In addition to the United States Securities and Exchange Commission, Russia has also issued an order to regulate cryptocurrencies in order to “protect investors.” We explore what this means for the future of cryptocurrencies.
In addition, we explore potential reasons for why cryptocurrencies have been on a steady decline in value, from regulations to infrastructure issues.
[bs-quote quote=”“When I first heard about Bitcoin, I thought it was impossible. How can you have a purely digital currency? Can’t I just copy your hard drive and have your bitcoins? I didn’t understand how that could be done, and then I looked into it and it was brilliant.”” style=”style-2″ align=”center” color=”#dd9933″ author_name=”Jeff Garzik” author_job=”” author_avatar=”” author_link=””][/bs-quote]
The Current State Of The Cryptocurrency Market
According to Forbes, the total market cap of cryptocurrencies is $700 billion. This number is much lower than the market cap at the beginning of 2017, when the Bitcoin price was over $20,000. Additionally, this number pales compared to a few years ago when the Bitcoin price reached over $1 million. However, many are still bullish on cryptocurrencies’ future.
One of the biggest reasons why cryptocurrencies have lost their value is because of regulations. For example, China and South Korea have recently banned ICOs – Initial Coin Offerings – which is essentially a new way for companies to raise money by issuing digital tokens that can be traded in exchange for other virtual assets or services.
And then there’s infrastructure issues. As we discussed earlier on this article, cryptocurrency infrastructure tends to be more limited than traditional currencies such as stocks and bonds. Many believe that this limits where cryptocurrencies can be exchanged for ordinary currencies like dollars and euros due to issues with cybersecurity and regulatory concerns.
Why Are Cryptocurrencies On a Steady Down In Value ?
Cryptocurrencies such as Bitcoin and Ethereum have been on a steady decline in value for months. People purchase cryptocurrencies to get investment exposure, but many of these investors are not happy with what they’ve received.
Many believe that the price of cryptocurrencies will continue to fall until there is no longer an upside. After all, it’s not just the value of the currency that’s falling, but also its usability. It was recently reported by The Verge that people who used cryptocurrency exchanges during 2017 had lost over $5 billion in value.
The United States Securities and Exchange Commission (SEC) recently announced that it is considering regulating cryptocurrencies such as Bitcoin and Ethereum. This news has caused a wave of concern among cryptocurrency investors around the world.
[bs-quote quote=”Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency… for large transactions, currency can get pretty inconvenient.” style=”style-2″ align=”center” color=”#dd9933″ author_name=”Bill Gates” author_job=”” author_avatar=”” author_link=””][/bs-quote]
Effect On The Future Of Cryptocurrencies
With the recent news regarding cryptocurrencies, many are wondering what this means for the future of cryptocurrency.
The most prominent cryptocurrency has been Bitcoin, which is a form of digital currency that has seen its value increase significantly in the past few years. The reason for this incredible value? Blockchain technology.
Bitcoin was created by an unknown person or group called Satoshi Nakamoto in 2009 with an idea to create something that couldn’t be replicated via traditional means. What makes Bitcoin so special? It is a peer-to-peer payment network where all transactions are recorded without having to go through a central authority and can be verified immediately after they occur.
[bs-quote quote=”There may be other currencies like it that may be even better. But in the meantime, there’s a big industry around Bitcoin.” style=”style-2″ align=”center” color=”#dd9933″ author_name=”Richard Branson” author_job=”” author_avatar=”” author_link=””][/bs-quote]
Conclusion on Why Cryptocurrency Is Down Today
This article is an overview of the current state of the cryptocurrency market. The article discusses the current price of cryptocurrencies, what this means for the future and what’s next.