As people across the world become more aware of the cryptocurrency revolution, investment experts are gathering to voice their opinions. In recent weeks, crypto forecasters have been predicting figures that are in opposition to the laws of physics. It’s not unusual to hear the prognosticator on television explain their reasons for believing that Bitcoin is likely to reach anywhere between $250,000 and $500,000 in the coming two years. If the coin reaches $500,000, it will need to grow at least 6000% above the current levels. The numbers are stupendous.
On the other side We have the naysayers. There are many well-respected financial analysts who don’t hesitate to inform people about the risk of an investment bubble. They even acknowledge that crypto currencies could have some potential remaining however, sooner or later the bubble is likely to burst and many people will be hurt. To make their point, they must think about the IPO bubble that popped in 2001.
The Technical Hurdles
The cryptocurrency revolution is in its early stages. Therefore, the majority of coins, Bitcoin included, are trading with no any historical indicators to aid investors. It’s a free market in its most pure form. Unfortunately, the free market can be influenced by every direction. That’s the issue for investors in cryptocurrencies. Without a history to draw upon investors must make their decisions based on instincts.
The challenges that hinder the process of making decisions to Bitcoin investors are numerous. The cryptocurrency is always vulnerable to technical issues in bitcoin margin trading. The rapid increase in price is due to high demand and limited supply. However, investors can are a bit irritable when the price rises excessively, and too quickly. We then see the usual correction when an investment has been over purchased. However, the corrections are turning out to be extremely harsh and test the grit of investors who haven’t been accustomed to such extreme levels of volatility.
While we leave the technical analysis aside the issue of technology is driving the market in the present. It’s not difficult to see that the cryptocurrency market has faced its challenges. Following the announcement that block-chain technology will be the most secure method for communicating data, it’s not without flaws that are exposed nearly every day. The flaws will be solved as this type of technology is set to receive use in the future. However, Bitcoin has block-chain technology in the spotlight right now.
Whatever level of security a system claims that it is, cybercriminals will surely to find weaknesses rapidly. The cryptocurrency industry has been targeted by hackers who have taken billions of dollars worth of Bitcoin as well as other cryptocurrency. Being a victim of hackers can to make investors nervous. This also creates a lot of lawsuits from people who have been who have been harmed by technology that might not be safe as claimed.
The Fundamental Hurdles
It’s a well-known adage that says: If the school administrators and teachers begin investing in millions the market, prices will plunge because we’ll require school teachers and the janitors. In reality, governments become anxious when residents begin losing money or making a lot of money and not paying taxes. It’s not an accident it is that India or South Korea are among the most active countries on cryptocurrency exchanges, but both governments are looking at banning the trading of all crypto currencies. The US could be the largest Bitcoin user, is currently working within Congress to determine how they will regulate the market for crypto currencies. They’ve already banned a number of exchanges in the event of fraud. China is considering the possibility of a complete ban, while Europe appears ready to follow the American model.
In the event that Bitcoin as well as any other cryptocurrency is aiming to become an international currency used for everyday transactions the success of this endeavor will depend on the largest economies in the world participating to the march. The major actors (mentioned above) appear to be heading in the opposite direction.
The main concern appears to be the appeal of Bitcoin to criminals. There is evidence that proves North Korea has been stealing Bitcoin to fund their nuclear programs. ISIS frequently transfers money between its associates using Bitcoin but does it undetected until the moment it’s time to stop. Drug dealers are also getting the protection of anonymity offered through block chain technology. The increasing number of First Coin Offerings (ICOs) are showing as nothing but typical frauds. All of these are serious problems.
All of these are important issues that must be resolved in a positive manner if crypto currencies will survive and eventually prosper.
Looking or Solutions
In the majority of cases, people are fascinated by all aspects of cryptocurrency. Bitcoin has already demonstrated the possibility of resolving problems with payment between customers and merchants. But trust will be an important issue moving forward. If the anonymity aspect is the primary driver behind the cryptocurrency revolution It will be difficult to get governments to get on board and support the use of crypto-trading. Home: www.btcc.com
Let’s examine the way South Korea decided to resolve the Bitcoin issue. It was the South Korean government recently passed legislation that grants six Korean banks the right to let their customers trade Bitcoin using the bank account. The only condition is that the account needs to be opened under the client’s actual name. Poof! It’s the end of the anonymity feature. But, South Koreans can still trade Bitcoin via an Bitcoin Wallet provided that tax evasion doesn’t be the primary reason they’d like to use it. It’s a great compromise however its appeal is restricted.
In the coming months, investors are likely to start receiving answers to lots of questions. In the meantime the price for Bitcoin and other crypto-currencies will be fluctuating. The price will rise because of demand , but will decrease whenever a new issue gets newsworthy. As long as prices remain stable, investors must adhere to one principle of investing. Don’t invest more than you are able to afford losing. In fact, Bitcoin is reaching its crossroads.