Russian Central Bank stated that the drive for cryptocurrency investing is a “crypto fever.” This fever according to the, will be tapering off gradually further driven by the bearish trends of 2018.
Elvira Nabiullina, stated, that the “fervor surrounding cryptocurrency and blockchain to be waning.” This she stated when she was speaking at a finance innovation forum that was organized in Sochi. Nabiullina’s statement is moderate, and it is not an outright statement criticizing the entire cryptocurrency.
The exact lines spoken by Nabiullina read thus: “Fortunately, the crypto fever has begun to diminish. Technologies such as blockchain have inspired great enthusiasm, but now, as far as we can see, the approach to them is soberer.”
The fever of the crypto industry has been due to the overwhelming reaction of the investment community due to the short-sighted trading process. She also takes sides to some of the unsubstantiated claims.
Russia’s central bank praised entrepreneurs and well-established businesses who have discovered ways to implement the blockchain into their projects, rather than to make use of the buzzwords to attract the investors.
Nabiullina praises the seed money concept through ICOs as a novel crypto model, and she stated that it was a perfect method to raise funds.
The lack of regulation in the industry she states has led to accessible and widespread fraud in the cryptocurrency industry.
The cryptocurrency has been long under news for right and wrong reasons. It has been attacked for several of its faults.
Economists and Nobel price academicians have been studying cryptocurrency as an alternative to the traditional fiat currency. They have been focusing on understanding the viability of the cryptocurrency as a form of money.
There are several advantages to the crypto money as the enthusiasts see it. The transactions are secured through blockchain, and these digital currencies can be transacted outside of the tender that is being controlled by the centralized government authorities. However, economists have been continually pointing out reasons for why the cryptocurrency is failing to perform as a cryptocurrency. Price volatility and the failure for deflationary currencies to perform over time have commonly been cited as major problems with crypto becoming a dominant source of money.
Several detractors have frequently been pointing out to the cryptocurrency as that which is driven by the “bubblish fever,” and some have even controversially supported the crypto to the “tulip mania.” The collapse of more than 2000 internet stock companies is similar is considered to be an analogy to the current cryptocurrency industry.
Critics have stated that cryptocurrency is mostly a pyramid scheme. They say that the success of the early adopters is to provide them with the incentive in a way to attract several other users who will further buy into the currency.
The buy-in made by most of the investors is considered to be due to the overnight riches. The process of amassing wealth is considered to be via appreciation. This process also provides incentives to identify more customers.
Cryptocurrency has been compared to be a global virus, and the investors were referred to be infected patients who are obsessed with the idea of investing. The investors are considered to be in the frenzy of their passion for the relevant technology and the industry.
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