During week 51 the price across the crypto world has dropped considerably. Now into week 52 a slight recovery is taking place. Speculation over why the price dropped are as usual floating around. The fact is that Japan started its regulation on Crypto exchanges an other governments are following suite. FX analysts are saying that its to do with investors getting out of the market and turning to other investments. If this was correct then those investors would have lost funds in doing so! The crypto market is still in the early stages even at this 9 year point. The overall value is still small and not that widely publicised. This supposed crash on the crypto market is fairly insignificant compare to stoke crashes in the past.
Where does it go now?
Government recognition is taking place, be it very slowly. The Blockchain technology is little understood by most and this shows. The Bank of England states it will be moving into peer-to-peer banking, meaning they do not want to use the actual word but just the algorithm behind it.
Wallets seem to being created on a daily basis and ICO are a bound like candy. This aspect of the Crypto world should be heavily regulated and in an independent way. Decentralisation is the future but this would also mean better self governance. I currently hold several wallets and yet each day a new wallet is formed, should I hold one euro in each?
If a government where to be truly involved the advise would be to create the coin of that country link to the actual countries currency and step into the new world.
Example the British Pound Sterling could create #SterlingCoin as the United States has the Dollar so you would have #DollarCoin Europe #EuroCoin how difficult can you make it? The issue with current coins struggles with a backup in other words one #LiteCoin is or has a value of X and this in turn is backed up by the value you paid for it Y, but the security of Y would mean as in any banking institute that Y is held in a vault means its securities. However in the case of Crypto currencies Y doesn’t get held as it will be used by the company to pay for its cost and transferred to profits. So the bottom line currently is there is no security in holding a #BitCoin or any other coin for that matter. In the event of a complete system failure there will be nothing left.
However since the dawn of trading one item for another it has only ever been what two individuals assign a value to whatever it is they are going to exchange. We are currently in a chapter of history that asks us the question what is the value of a “bit” of information worth. Some days it seems to be worth more than others! And what you belive is dictated to you by me and the others out there that BELIVE in the #Blockchain.
If you disagree or have any comments please let me know.