Starting with last week, cryptocurrencies are in a dramatical decrease of their value. Because of an error produced by CoinMarketCap exchange platforms on global marketplace began a chaos game. Today, 18 January, 2018, the price for 1 Bitcoin is almost 11.800 US Dollars and for 1 Ethereum is 992 US Dollars.
According to CoinMarketCap, from the top 500 crypto coins corresponding to market capitalization, statistics show a decrease for 483 of them. Approximate 300 billion US Dollars were eliminated from the total amount of market capitalization.
The negative part
The statistics made by the end of 2017 were impressive. The prices should have grown over 20.000 US Dollars for Bitcoin, for example. No one expected the existing situation. A lot of investors who bought in December 2017 Bitcoins (for example at the price of 19.000 US Dollars) suffers enormously today.
There are people who borrowed money to invest in cryptocurrencies, hoping that their value will increase over time.
The guilty ones
Those who are being accused by users are: South Korea and China. By the end of 2017, China was already preparing to block some of the main activities related to cryptocurrency blockchains. A lot of Shanghai’s exchanges were closed and some of them moved overseas.
South Korea is being blamed for the error produced last week, which is basically produced by CoinMarketCap exchange platform. The second one was the starting point of the existing imbalance.
A lot of exchanges started to slow down their crypto activities. Even BitConnect announced about their closure. More and more countries began to worry about their economy and future inconveniences, such as France, Germany, Egypt and others. These are negotiating for a new regulation in terms of cryptocurrency. France has already scheduled a summit with G20 members this year.
An opportunity or not?
Individual users think now is the perfect moment to buy cryptocurrencies. So… yes. If you regret somehow you didn’t bought Bitcoin by the third quarter of 2017 while it still had an acceptable price, then now it’s the time for you.
But, how much will this decrease last? Do you really believe the digital coins’ values will raise back?
Investors are quite sceptic about blockchain’s future. As we said above, a lot of cryptocurrencies lost their partnerships with big investors. The market capitalization is decreasing as well as the cryptocurrencies’ prices.
What’s your opinion about cryptocurrencies ‘evolution’? Will you take this chance?