Cryptocurrency has always been volatile in terms of price, however, 2018 has been a particularly difficult year for this market. The past few months have marked the beginning of a dangerous period for all types of cryptocurrency, big and small, with Bitcoin taking the most worrying fall of all.
The famous crypto coin has been on a downward spiral of sorts ever since it was announced that Bitcoin would hard fork in order to create a new type of cryptocurrency. Investors considered this move to be dangerous, and as a result, the market crashed before the event, however, even after, Bitcoin still fluctuates.
Bitcoin is not the only one going down
Bitcoin fell 11% against the U.S. Dollar in the last day alone, and this is simply the latest development. The crypto coin took a big hit right from the start of the month when its price dropped 8 percent.
However, it is important to also look at the less popular and less successful cryptocurrencies, namely XRP and Ether. These seem to follow the market movements of Bitcoin, and as a result, their values have fallen in the same timeframe by 10.16, respectively 15.56 percent.
Most analysts will admit the fact that the cryptocurrency market is taking hit after hit, and that it is uncertain if this trend will end any time soon, however, there are also some who argue that this is our own doing.
Looking to solve the problem before it’s too late
The fact that companies and investors have become cautious when it comes to cryptocurrency is undeniable, and there are some opinions that show this type of behavior to enable the current crisis in this market.
This is due to the fact that, while the prices of cryptocurrency have fallen as a result of various economic decisions, they may now still be going down, artificially, as a result of a defensive trend in those who choose to cut their losses when they should try to actively turn things around.
A growing number of people considers that the best way to stabilize the market is to start focusing on the good projects that would encourage people to resume the integration process of cryptocurrency into their businesses.
There are a couple of things that are constantly feeding the market:
- Investors – While they are only interested in how the market evolves, the money that investors bring to the table is what keeps cryptocurrency afloat;
- Customers and businesses – The driving force behind the evolution of cryptocurrency, individuals and organizations are the ones who actively use crypto coins such as Bitcoin in order to pay for products and services, thus deciding if they are in demand or not;
Overall, the only way to stabilize the market is to organize a larger number of projects that involve blockchain technology, not necessarily cryptocurrency. This will work towards making people more comfortable when it comes to the technology behind cryptocurrency and help them understand how they can integrate it into their businesses.
2018 has not been a great year for cryptocurrency, and this may continue in 2019 if measures are not taken. The solution may be to organize projects that involve blockchain technology in order to help people understand what powers Bitcoin.
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