The price of Bitcoin was sharply increasing last winter. But the story in the crypto market as at now is completely different. If there is one thing that seems quite certain right now, it is that the value of Bitcoin may not see a surge soon after the sudden drop, which started in July.
According to Financial Post, many investors have lost a lot of money since the drop in the value of Bitcoin, with returns quite less compared to what they invested.
The virtual currency markets have been through booms and busts before — and recovered to boom again. But this bust could have a more lasting impact on the technology’s adoption because of the sheer number of ordinary people who invested in digital tokens over the last year and who are likely to associate cryptocurrencies with financial ruin for a very long time.
Investors who’ve been in the crypto market for a long time may not feel the effect of the change in value, because their returns are bigger compared to their investment. However, new investors will remain in red if they invested in the crypto market over the last 9 months.
A post published on BBC shows that there is still lack of a clear stand on the price stability of the Cryptocurrencies because of the many disagreements on the solution to reduce price volatility.
But there is disagreement within the industry about the best way to reduce the price volatility of cryptos. Coinfloor hopes to solve the volatility issue by attracting far more money into the sector in the belief that greater trading volumes will lead to a more efficient market.
This will require better regulation, argues Mr Nwosu, before large institutions are likely to commit serious money. Concerns about the abuse of cryptos for money laundering and terrorist financing remain a barrier to mass acceptance, he says.
Regardless of the disagreement, tokenizing assets seem to be the way forwards towards making sure that the value of Cryptocurrencies remain stable for the long term.
Bitcoin Exchange Guide thinks that part of the reason why the Crypto market is as shaky as it is right now comes down to ignorance and market saturation. And this raises serious concerns.
One of the other pressing matters that the cryptocurrency world is presently facing is this: It’s becoming overly saturated, which isn’t so much of a bad thing for cryptocurrencies, but it carries with it some serious concerns. With no organization, strong regulation/oversight and no truly unified or cohesive structure: that’s a recipe for disaster in the long run.
In fact, if the market lacks organization and strong oversight, Cryptocurrency investors should prepare themselves for some total disaster.
Today, people are in the crypto market to make as much profit as they can. Bitcoin Exchange Guide argues that there is nothing beyond this agenda. If this continues, Bitcoin won’t be as more valuable in future, as it should be, really.