Confidence Crisis in the Cryptocurrency IndustryDecember 30, 2018
Confidence crisis hits the cryptocurrency industry along with regular issues like hiring, financing the functioning of the exchange, technology, marketing etcetera.
Stringent regulations placed on the cryptocurrency industry and ICOs and hard forking after battles between developers did not wipe away companies. Companies have managed to stay around, and they are equipping themselves work in compliance with regulatory standards.
There are continued promises about the scope of the cryptocurrency despite the high volatility and overall bearish trend in the market. Some investors are not selling, and they are in the HODL mode.
Several investors place a lot of trust in the spirit of innovation of the blockchain and the idea of digital assets that are decentralized and not under the control of the government. Several governments are not interested in permitting the functioning of cross-border transactions out of their control, so they have chosen to ban it, and they did ban it. There are other countries like Japan who did not want to lose out on the potential of this technology and therefore did streamline their regulators and their control over such companies and exchanges.
Countries like the US are debating on regulations, and they are classifying the asset type into a category, and they are working on framing specific laws to control the use of these assets. Every country proposes a new challenge to the cryptocurrency industry, and each one of them faces it differently.
Countries like Siberia seem to be the choice to provide for the high electricity requirement. The Island of Malta is providing for overseas licensing of offshore companies. Alternative channels are developing to keep the industry survived.
Governments do not want to push the industry to the underground, and therefore they are looking to regulate it. Pushing the cryptocurrency to the subway will only put the industry more out of control of the government and eventually making it easy for terrorists and money washers to use it to their fancy.
The very purpose of cryptocurrency regulation is to prevent money laundering, and terrorist funding and governments will do all it takes to keep it sustained.
The current market is considered to be in the time point when those who are investing in buying the cryptocurrency for low prices can expect some cost averaging in the long run. The blood in the streets is indeed the right time to buy, and savvy investors know that they do not want to miss the opportunity. However, if the price takes a hike to suit the all-time high hype, then you need to watch the market to learn what happens.