Cryptocurrency's High Time Has Returned Again!
After the darkest time ever recorded in the digital currency trend reaching a $97.6 billion low hit last 15th September, the business is back to booming and has even increased to 45%, reaching $141 billion earlier. This can be considered a great recovery from the past few days, as the market cap is boosting in value and sentiments of investors are solidifying even more.
Dropping to below $100B was the lowest to record since August, making huge buzz and demise of investors worldwide. The good news is the quick bounce back of the market to nearly 50%. Remember that an investment to digital currencies is unregulated. Anyone thinking of diving into the world of web cash should treat it like a lottery; i.e., they should expect that investments will be gone anytime.
The Regulatory Framework
Bitcoin has been introduced to the online market in early 2009; but since then, a lot of digital coins have been generated similar to its purpose. The continued increase of population makes it difficult to have a governing framework that will protect and manage the in and out cycle of trading digital assets.
War on Governance
A lot of government agencies across many nations are actually trying to manage the digital assets worldwide, making it look like a title bout in every attempt and giving different speculations base on different beliefs.
Just two years ago, the US Commodity Futures Commission tagged these web coins as commodities and not something tangible as real cash.
However, in 2016, the US Federal declared that Bitcoin should be considered by Coindesk as real money. The developments are really slow in progression because the framework will depend on different decisions and plights, and there is no solid and accurate description that can be agreed by everyone.
Chinese Government’s Action that Shocked All
The Chinese government recently took a massive step – they have decided to stop cryptocurrency local trading as was agreed in the latest meeting with their exchange reps. Due to the actions taken, a lot of people have been greatly affected; especially those in digital community as many other smaller web currencies suffered losses due to hold back of three major crypto coins.
Declination of Assets
Bitcoin, the most popular among the digital currencies available today, suffered a dip of $2950 from originally $5000 just on the first week of September.
Coin Market cap also recorded that the second highest cryptocurrency went down to $200 on September 15, the day considered as the darkest time for digital trading.
Bitcoin and Ether, though greatly affected with the dip, boosted upward recently; gaining 25% for Bitcoin while Ether is now above $295 today as recorded in Coin Market cap.
Due to the recent hiatus and downfall of digital currency investment because of China’s crack-down, there was an evident withdrawal of assets monitored worldwide, causing a big impact on the market flow. The CEO of iComply, Matthew Unger commented that investors may be sceptical these days, but an increase of investments can be seen again; as the coin market value is starting to increase and showing promising numbers again.
This statement was seconded by the Crypto Asset Management director, Tim Enneking who stated that investors are slowly coming back and giving in their asset contributions again.
In the future, experts are hoping a more stable market for cryptocurrencies and even, a quicker bounce back to any regulatory threats because trading will have not much of an impact to these digital assets; as said by Lucas Geinger of Wireline.
Many large businesses have been dependent on crypto coins nowadays; some have begun researching on and thinking of joining the current trend, as mentioned by Geinger. Futuristically, if larger companies hold ICO, there will be an increased demand for Ether and Bitcoin.