As people all over the world increase their awareness about the crypto-currency wave, investment experts are lining up to express their opinions. In recent weeks, the pro-crypto forecasters are guessing numbers that leave behind gravity. It’s not uncommon to see a prognosticator on TV explaining why they believe Bitcoin is most likely going hitting which range from $250, 000 and $500, 000 per coin next two years. At $500, 000, the coin must increase more that 6000% from it’s current levels. The numbers are mind-boggling.
Opposed to this of the fencing, we find the naysayers. get private key from recovery phrase There are plenty of well-respected financial analyzer who aren’t afraid to warn people about the investment bubble. Some even admit that crypto-currencies might still have some play left in the individual, but sooner or later, the bubble is going to burst, and the wonderful are going to get hurt. To drive home their point, they only have to reflect on the IPO bubble of 2001.
The Technical Difficulties
The crypto-currency wave is still in its infancy. As a result, most coins, Bitcoin included, are trading without historical indicators to help investors. It is a free market in the most natural form. Unfortunately, free market trading is susceptible to influence from all directions. Therein lies the apply for crypto-currency investors. With no history to fall back on, investors have to make decisions based on their gut.
The obstacles that mess with the decision-making process for Bitcoin investors are plenty. The coin is always susceptible to the technical facets of trading. The exponential increase in price is being driven by sought after and tight product. Still, investors get a little antsy when the price increases too much, too fast. Then we see the typical a static correction that comes when an investment becomes over bought. The problem is these corrections are demonstrating to be harsh, which tests the mettle of investors who aren’t used to such high numbers of volatility.
Setting technical analysis aside, technology issues are also driving the market today. There’s no denying that the crypto-currency market has had its issues. After defining block-chain technology to be the securest approach to disseminating information, there are holes that are being exposed daily. The bugs will get exercised as this kind of technology seems most likely going for prime time. Unfortunately, Bitcoin has block-chain technology under a microscope right now.
No matter how secure any system may claim to be, cyber-terrorist will automatically expose the disadvantages in a hurry. The crypto-currency industry was already trapped by cyber-terrorist, who have thieved billions of dollars in Bitcoin and other crypto-coins. Losing money to cyber-terrorist tends to make investors a little jittery. It also tends to make plenty of litigation from those harmed by technology that may not yet be a secure as stated.
There’s an old saying: When school teachers and janitors start making millions from investing, prices are going to crash because we start to use school teachers and janitors. The truth is governments get nervous when its residents start losing money or making lots of money without paying taxes. It’s no coincidence that The indian subcontinent and South Korea are among the most active countries on the crypto-currency transactions, yet both governments are thinking about banning the trading of all cryptos. The us, potentially the world’s biggest Bitcoin player, is getting work done in Congress to decide how to regulate the crypto-currency market. They have banned several transactions for possible deceptive activity. China is discussing an straight up ban while Europe seems positiioned to follow America’s lead.
If Bitcoin or any other crypto-currency aspires to becoming a worldwide currency for everyday payments, success would be predicated on the world’s biggest economies joining in the celebration. Unfortunately, the major players (mentioned above) seem to be relocating the other direction.
The biggest concern seems to be Bitcoin’s appeal to the criminal element. Proof has been presented that shows North Korea has been obtaining Bitcoin to help finance its nuclear program. ISIS routinely moves money among its affiliates via Bitcoin, doing so hidden until it’s too late. The drug trade is also enjoying the anonymity afforded them by block-chain technology. More and more Initial Coin Offerings (ICOs) are demonstrating to be activities like common scams. These are all serious issues.
Looking or Solutions
For the most part, people are interested in all facets of crypto-currency. Bitcoin has recently shown the potential for easily resolving payment issues between customers and vendors. However, trust is a big issue going forward. If the anonymity feature is the driving force behind the crypto-currency wave, it will be hard to get governments to climb onboard and say yes to crypto-trading.
Let’s look at how South Korea decided to resolve the Bitcoin issue. The South Korean government recently passed a bill giving six Korean banks authority to let its customer trade Bitcoin from their bank accounts. There’s only one stipulation: the account has to be opened in the patron’s real name. Poof! There goes the anonymity feature. However, South Koreans can still trade Bitcoin via a Bitcoin Wallet so long as tax evasion isn’t the reason they want to do so. It’s a nice compromise, but its appeal may be limited.
Over the next few months, investors should start getting answers to several questions. Until that point, the pricing of Bitcoin and other crypto-currencies will remain volatile. The price will increase because of demand but will drop whenever a new issue becomes news. Until prices become stable, people should focus on one rule of investing. Never invest more money that you can afford to lose. Indeed, Bitcoin is reaching its crossroads.