The cryptocurrency revolution is still in its infancy. Therefore, most coin trades, including Bitcoin, do not have historical indicators to help investors. This is the purest free market. Unfortunately, free market transactions are subject to influence from all sides. This is the problem for cryptocurrency investors. Since there is no history to rely on, investors must make decisions based on their instincts.
There are many obstacles that complicate the decision-making process of Bitcoin investors. Tokens are always sensitive to the technicalities of trading. High demand and scarce products have caused the exponential price growth. However, when prices rise too much and too fast, investors will feel a little uneasy. Then we see the typical correction that occurs when an investment is overbought. The problem is that these changes have proven to be drastic, testing the courage of investors unaccustomed to such high volatility.
Apart from technical analysis, today’s technical issues are also the driving force behind the market. There is no denying that there are problems in the cryptocurrency market. After the announcement that blockchain technology is the most secure way to distribute information, vulnerabilities are exposed almost every day. Since this technique seems to be predestined during prime time, these errors will be fixed. Unfortunately, Bitcoin has now taken a closer look at blockchain technology.
Regardless of a system’s claimed security, hackers are sure to quickly expose its weaknesses. The cryptocurrency industry is surrounded by hackers who have stolen billions of dollars worth of Bitcoin and other cryptocurrencies. Getting hacked to lose money often makes investors a little nervous. It also allows those who have been harmed by technology to file a large number of lawsuits, and these technologies may not have achieved the security promised.
There is an old saying: when school teachers and gatekeepers start making millions of dollars through investment, prices will plummet because we need school teachers and gatekeepers. The fact is that when residents start to lose money or make a lot of money without paying taxes, the government gets nervous. It is no coincidence that India and South Korea are among the most active countries in cryptocurrency transactions, but the governments of both countries are considering banning all cryptocurrency transactions. The United States, arguably the world’s largest bitcoin player, is working in Congress to decide how to regulate the cryptocurrency market. They have banned several exchanges that may have fraudulent activity. China is discussing a full ban and Europe seems poised to follow the United States.
If Bitcoin or any other cryptocurrency aspires to become an international currency for daily payments, its success will depend on the participation of the world’s largest economy in the parade. Unfortunately, the big players (mentioned above) seem to be heading in a different direction.
The biggest concern seems to be Bitcoin’s appeal to criminals. There is evidence that North Korea stole Bitcoin to fund its nuclear program. ISIS often uses Bitcoin to transfer funds between its affiliates until it is too late to be discovered. Drug transactions also enjoy the anonymity afforded by blockchain technology. More and more initial coin offerings (ICOs) are turning out to be nothing more than regular scams. These are serious problems.
If cryptocurrency is to survive and prosper one day, these are basic issues that need to be actively addressed.
Looking for or solution
In most cases, people are interested in all aspects of cryptocurrency. Bitcoin has shown the potential to easily resolve payment issues between customers and suppliers. However, trust is a big problem in the future. If anonymity is the driving force behind the cryptocurrency revolution, it will be difficult for governments to enter and approve crypto transactions.
Let’s see how South Korea decided to solve the Bitcoin problem. The South Korean government recently passed a law authorizing six Korean banks to allow their customers to trade Bitcoin from their bank accounts. There is only one rule: the bill must be in the customer’s real name. puff! There is an anonymous function. However, Koreans can still trade Bitcoin through Bitcoin wallets, as long as they don’t want to evade taxes. This is a good compromise, but its appeal may be limited.