Promise and Peril Situation in the Cryptocurrency MarketJune 19, 2019
Cryptocurrency as a decentralized cash alternative is a kind of investment, but there has been a good share of severe and scam coins in the cryptocurrency space. There have been several market moves, and it has forever been a promise and peril situation in the cryptocurrency market.
While in the year 2018, cryptocurrency problems were becoming commonplace, but now the exchanges are expanding, and we are at a point in time where Bitcoin and other cryptocurrencies like the Ether are evolving to become a mainstream phenomenon.
In the past year, the trend was such that exchanges were compromised and software programs were stealing Bitcoin. There were compromised exchanges where the traders were witnessing the founders running away with funds.
It was severe trouble for those initial coin offerings and those who were offering new currencies. There were accusations of fraud, and some collapsed. The price of the Bitcoin plunged to the lowest ranges.
Despite all this, a lot of activity is happening with cryptocurrencies. In the current year, the spot price of Bitcoin has recovered. There are tons of benefits for the cryptocurrency business as they can create trading technologies which will conduct transactions which are unique to the industry. There was no need for a central authority, and it was one of the biggest problems.
The current action trend in the market is indicative of that at one point in time cryptocurrency might become a significant player in society.
The significance of the launch of Libra from Facebook is indicative of the fact that there are good ways to think about cryptocurrency.
The most important fact is that banks need not introduce cryptocurrency. A central bank need not control Their exchange rates. It is about the counterparties agreeing to honor the contract which involves exchanging value.
So, cryptocurrencies are evolving as a means of value storage, a method of enacting transactions, and a document which records transactions. The parties to the transaction are kept honest without a central authority utilizing a cryptographic function which encodes the successive operations in the form of hashes and codes. The whole system is networked in a way that a single computer will not be able to reverse the process.
While Bitcoin is the dominant player in the market, considering the weaknesses and strengths of Bitcoin, many will prefer to choose some other cryptocurrency with some variations in the attributions.