Is the Age of Cryptocurrency coming to an end? Is Cryptocurrency nothing more but a dying fad, on the verge of extinction?
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. It operates independently of a central bank. Blockchain is a type of security that protects you and anyone else from creating a copy of the bitcoin, which you or someone else has bought.
Cryptocurrencies are a fast and comfortable method of payment that has a worldwide scope. It gave birth to an astonishingly dynamic, quick growing market for the investors and speculators.
Blockchain Mind, a Toronto based blockchain consulting firm provide free workshops about cryptocurrencies every month. When Bitcoin was at $20K, they had 300 people show up to the event, which had to be split into two sessions due to very high demand. However last week as the value of Bitcoin trading dropped down to $10K USD, a total of only 10 people attended the event. This brings reason to believe that people are losing interest or do they fear in investing in cryptocurrency after the sudden drop of 50-75% value within a month.
It is believed that one of the main reasons as to why this drop in Bitcoin value, as well as other cryptocurrencies is the result of strict new rules being introduced revolving cryptocurrencies, which caused investors to indulge in fear. Countries such as China and South Korea announced “plans to stop people from mining cryptocurrencies,” or “placing a ban on the trade of virtual coins” respectively. Such rules have caused a whiplash response, resulting in not only Bitcoin, but other popular cryptocurrencies including Ethereum and Ripple to also go down in value, resulting it what is termed as the “Bloodbath” of Cryptocurrencies (Jasper Hamill, 2018).
Though there may be a correlation between the news displayed by the media as well as the drop in investors for cryptocurrencies, there is reason as well as confidence in the faith that cryptocurrencies will be a rise in the future due to the fact that it is decentralized and a more secure method of investing money.
Authors: Abirame Sivakumar and Vibushan Sivakumar
Hamill, Jasper. “Cryptocurrency ‘bloodbath’ as Bitcoin plummets amid fears of global
clampdown.” Metro, 16 Jan. 2018, metro.co.uk/2018/01/16/cryptocurrency-bloodbath-bitcoin-ethereum-ripple-litecoin-drop-price-fears-global-clampdown-7232959/.