Why This May Be the Last Year for Bitcoin and its Brethren?
If you are on the naysayer’s end of the spectrum, then you may have some reasons to believe that the end of cryptocurrencies is drawing near. Why should we be sceptical about the future of crypto assets in 2018, though?
A number of experts and observes have spelt an ill turn of events for Bitcoin. From Wall Street brokers to J.P. Morgan CEO Jamie Dimon, negative opinions have been flying around.
Here is a list of reasons why crypto assets may dwindle to oblivion in the following months.
Big But Not As Much
Bitcoin continues to dominate market capitalisation, but this doesn’t mean that it has been adopted for wider use. Certainly, the valuation jumped multiple fold all throughout 2017 and the potential is present in 2018.
But how many people are actually prepared to purchase in Bitcoin, and conversely – how many people are prepared to sell their goods in the crypto currency.
Regulations Come Aplenty
From the Unite States to China, regulators are clamouring for the privilege of taking a substantial bite out of the crypto world. The United States has gone after crypto exchanges that have been allegedly running Ponzi schemes, wasting their customers’ money to propel their own interests.
In China, the government has decided to put an outright crack on the crypto world. No local operators may now carry out transactions in bitcoin. And this is understandable. China baulks at the idea of enabling locals or foreign parties to have complete autonomy and to go around the state when dealing with moneyed transactions.
South Korea, which has one of the most lenient legislations on cryptocurrencies, has been inclined to tighten the screws and apply pressure on the crypto segment such as we know it.
Japan is another country that has a rather dovish approach as far as these digital assets go. And yes – there’s a but. Since Coincheck got hacked, the government is not as inclined and has opted for the gunk-ho manner of handling cryptocurrencies.
Warren Buffets the Cryptocurrencies
A number of critics have chimed in to lambast cryptocurrencies. Warren Buffet, the godfather of investment has said that cryptocurrencies are a disaster that will end badly.
Mr Buffet’s warnings are definitely sufficient to sway investors from investing so readily. If anything, the market is based on hearsay and there’s no shame in that.
After all, no one analysis is reliable when it comes to these assets due to their volatility. If the market were to crash today, not many currency would see the light a day when the dust had settled.
Cryptocurrencies are an elusive beat. We could never pinpoint them correctly. You will need to watch out for common bugbears and consider your investments. Do not go ahead and foolishly mortgage your homes for example. This year will be a litmus test for cryptocurrencies – they will either fly or drop dead from the sky.