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Cryptocurrencies and their Ups and Downs
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Cryptocurrencies and their Ups and Downs

by John M.March 5, 2018

Cryptocurrencies have taken quite a few beatings in recent months. For sure, 2017 was the year when cryptocurrencies soared to their highest summits. Bitcoin, Ethereum, Ripple and inconspicuous currencies all went up by a significant margin, and reached their apex in December. Bitcoin alone galvanized investors-in-the-making and people started breaking their piggybanks, as possibly – their lives. Many took mortgage on their homes to ensure that they will not be part of the lot who have missed on the cryptocurrencies.

Now, when the buzz around cryptocurrencies has passed, it is time to assess things for what they are, after the dust has settled. Cryptocurrencies have been buffeted a lot in recent months. Regulation worldwide is tightening quite a few indicators. The Bank of England has recently made a statement that more regulation is needed to put the crack on all illicit activities related to Bitcoin. Bill Gates warned that cryptocurrencies may actually be leading to physical deaths, and scientists have complained that the search for life beyond our own tiny blue spot in the universe has been hampered by GPU-hungry mining computers.

Still, cryptocurrencies are standing tall. Their market capitalization reached USD834 billion as of 7 January, and that was certainly enough to make people excited at claiming a juicy share of this pie. Conversely, it sent ripples of uneasiness among regulators.

Right now, cryptocurrencies are headed for the same course to uncertainty. They will run in circles, altering stomach-wrenching dips with attaining heady heights afresh. People who chicken out will usually have their assets snapped up by those investors who are playing the longer game.

Naturally, there is no proof that this so-called long game will actually lead to something investors want. There is always a chance that the market will turn on itself and that all cryptocurrencies will have an (un)timely demise.

As regulation is tightening, regular checks will continue to abound. Integrating Anti-Money Laundering (AML) systems and Know Your Customers (KYC) practices will lead to a revolution in the field of cryptocurrencies.

If these integrity schemes are successfully incorporated in how we manage and pursue cryptocurrencies, it is quite likely that they will take deeper roots, but more importantly – they will also step into the light while preserving their relative anonymity.

These recent years have seen quite a bit in the way of events where the digital chunks of gold are concerned:

·       China has banned ICOs and hauled all transfers so as to restore its supremacy in the realm of nether chunks of gold;

·       France has decided to treat its cryptocurrencies as gold derivatives;

·       The Central Bank of Austria has also introduce similar measures to keep cryptocurrencies within its control

Meanwhile, a number of institutions are now attempting to tax those newly-fledged cryptoworld moguls. In honesty, everyone who owns cryptocurrencies should be taxed. It is true that it goes against the libertarian notion and what Bitcoin, for example, represents. But it would be unfair for people who dodge tax to buy goods from hard working and tax paying citizens. Until such a time that the system’s been changed to accommodate the majority of people and remove tax levies, it would be unfair for crypto owners to go about untaxed.

 

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John M.

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