The State Of Cryptocurrencies
Cryptocurrency is a term associated with freedom from the government, as well as a possibility to easily earn money by investing in it. The first cryptocurrency was Bitcoin, created in 2009 it was a controversial invention, because for the first time there was no county that owned this currency.
Cryptocurrencies are obtained through “mining”, however, due to a rise in miners it is becoming more and more difficult to mine. Miners need to spend more on adequate equipment, which often isn’t worth the gain. Even though cryptocurrencies are pseudonymous it is required by law to collect personal information of the users. As for their legality, in some countries they are banned, in others not. China Central Bank banned bitcoin in 2014, while the US Internal Revenue Service ruled that bitcoin will be subject to capital gains tax.
Since transactions are mostly not protected by law it is a great place for fraud so it’s very important to be vigilant, as one wrong step can cause a lot of trouble.
Cryptocurrency is an attack on tradition banking, so even though it looks like a prosperous field, many powerful entities will not let it stay for long. Bitcoin, Ethereum and Ripple lost 38.10 per cent, 43.23 per cent and 48.14 per cent respectively of their value over the last seven days, and many suspect it could be the work of big banks. First they helped spread the currency, making the bubble bigger, and now they have a concern regarding cryptocurrency investors, since the value has decreased how will they pay their credit card balances after the market crash. The future of these currencies, which have made almost a revolution, is uncertain. There were always peaks and valleys, the price was always fluctuating.
Even though it is an enormous fall in value over the last week, and it looks grim for the investors, maybe it will come back stronger, maybe now is the right time to invest. But only time will tell.