Crypto markets are bearish, but world news are pointing that crypto is here for the long run
It was a brutal month for cryptocurrencies in January 18. Bitcoin price has fallen close to 50% from a high of 19000 USD to 10000 USD in 1 month. First we saw bitcoin, ripple and ethereum fall, thereafter dragging all other altcoins together with them.
There seems to be FUD (Fear, Uncertainty, Doubt) everywhere, especially from new investors who have joined the craze in the recent months. Personally, I think that the longer bitcoin stays within the range of 10k to 12k USD, the higher the potential for bitcoin price to go down even further.
But as I read about current global trends, it seems that society, at large, is becoming more willing to embrace cryptocurrencies. Today, I heard from my friend who just returned from Brisbane that Brisbane Airport will soon become the first cryptocurrency airport terminal in the world. Stores and restaurants in the terminal will be accepting bitcoin, ether or dash for payments.
There have been threats, warnings and rumours of bans from governments and central banks on cryptocurrencies but personally, I think that governments are taking too long to clamp down on cryptocurrencies. Many governments seem to be taking the ‘wait and see’ attitude, because no one is really sure how this game will eventually play out. But the danger is that developments in the crypto world are moving so quickly that the longer they ‘wait and see’, the wider the reach of cryptocurrencies and the harder it is for governments to clamp down and control cryptocurrencies in future.
Already, cryptocurrencies have permeated into music, gambling, arts, sports, etc. A few days ago, I read that my favourite EPL team, Arsenal, has become the first major sports team to sign a cryptocurrency sponsorship deal with CashBet to promote its ICO. With regard to this deal, the Financial Conduct Authority (FCA) commented that the regulator was planning to “conduct a deeper examination of the fast-paced developments” of ICOs and would take ‘further regulatory action’ if necessary.” My interpretation of this is that the authorities are still not sure of their positions on cryptocurrencies. So, what action they might take is anybody’s guess. All I know is that the longer they wait, the more money is going to flow into cryptocurrencies and possibly more difficult to regulate the use of cryptocurrencies in future.
So do you think this cryptocurrency market crash is another ‘once-off’ because markets are generally down during January or is this the start of the pop of the bubble? You can cast your vote and comment below!