As you know, recent times are not bright for the price of major cryptocurrencies. Actually for the whole 2018 the general sentiment around the market has been negative. Although ups and downs are changing, the tendency shows prices going deeply down in comparison with December 2017.
That is why many investors have the same question: “what is going on?”
Hacks and poor security are affecting market confidence
The result of a hack in South Korea was $42 billion loss. It is pretty impressive, isn’t it? In fact, events like this influence people’s trust and commitment. Why is this stuff still happening? Well, because cryptocurrency exchanges do not use superb technology and hackers take advantage of this vulnerability. The need for the third party that will protect consumers comes back again.
Investing in cryptocurrencies becomes much riskier taking into account hackers job. And many smart investors seek for safety instead.
Cryptocurrencies price manipulation
The fact of price manipulations that led to December’s $20,000 price of Bitcoin stimulates negative attitude towards cryptocurrencies. Price manipulators are just another reason why the market is down now.
But a positive news is that price manipulation is not going to happen again soon. Because blockchain technologies are going to transform the way we do business. Many companies already started to integrate this technology. So, cryptocurrencies should not need market manipulation to sustain their value any more. In future markets are going to be able to evaluate each coin on its own merits.
Government actions became another huge factor that has scared crypto investors this year. And the most notable were probably the actions of the US regulators.
Another problem in crypto market right now is that of supply/demand. Because of the high mining rewards and tax selling many people around the world started their business of crypto mining. And we ended up with more supply then demand for crypto.
And finally, it’s obvious that crypto coins became very over-valued and were overdue a correction in December 2017. No wonder why we are going to equilibrium, where demand meets supply.
Although the situation might seem to be negative for everyday investors, but overall, according to the experts there is no need for worries.
Of course there is still a long way to the bright future with no market manipulation. But certainly there will be true decentralization and stronger cryptocurrencies.
As experts say, Bitcoin and other cryptocurrencies didn’t reach the very bottom in price. But after this happens they will recover and gradually become stronger.
TeamLogic IT of Plano, TX is part of a fast growing nationwide network of businesses offering state-of-the-art solutions to small and medium-sized organizations. Through consulting services and a comprehensive array of services, TeamLogic IT addresses the needs of all levels of IT systems.
TeamLogic IT Plano, a Team of IT Support consultants, offers premium IT services in the Dallas-Fort worth Metropolitan Area. Our IT services range from basic IT support to advanced security support for small- and medium-sized businesses. Contact TeamLogic IT Plano, one of the best IT Consulting Company in the Dallas-Fort worth Metropolitan Area.