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More than two weeks have passed since the second big crash of the cryptic market of 2018, and many believe that the bubble that we all know as Bitcoin has finally exploded. This is the year when BTC has reached its highest ever value, and then gradually descend again.
While the whole year was progressively bearish, Bitcoin held its ground at a price of $ 6,400 for months. However, in mid-November, this changed and the currency continued to sink. As a result, the same year that gave him the value of $ 20,000 per coin led him to $ 3,700. Those who invested in it when it was at its all-time high have lost more than 80% of their investment in 11 months.
The fall is not only limited to Bitcoin, but to all major currencies, such as Ethereum, Bitcoin Cash, XRP and countless others. However, while many believe that these cryptos are going down, this does not necessarily mean they will all disappear. It is possible that some of them will survive. Even if digital currencies are not worth, they leave very little.
Cryptocurrencies are here to stay
Their usefulness is a real thing, recognized all over the world. Blockchain in crypto has entered a couple, and will probably remain together, mainly because they provide people with online transactions outside the banking system. This is no longer just practical for black market traders and many companies are already considering this as an alternative to traditional payment systems.
For some of them, this is not just a choice, but also a necessity. Banks often tend to deny services to some of their customers, as do credit cards. Sometimes, reason is none other than their political opinions. An example of this is what happened to an alternative social networking website called Gab. Gab is known for allowing its members to express controversial opinions on various topics, which is something that was not good with the banks. As a result, its founder stated that Gab will turn to BitPay and Bitcoin.
As this continues, more and more similar cases are expected, which is why alternative payment systems have become a necessity. However, the main Bitcoin exchanges, such as Coinbase, are becoming very politically correct. So much so that, in fact, they also started blacklisting those they do not like.
In addition, they are collecting the personal data of their customers and delivering them to the IRS. In the end, Bitcoin users can only guarantee their privacy by never using their coins for nothing. This is just one of the problems associated with Bitcoin. It is also very slow when it comes to confirming transactions, it consumes a lot of energy and there is a constant risk of loss if investors lose their private key. Not to mention the external threats, such as fraud, hacking, the government crackdown and the same way.
However, the biggest problem with Bitcoin and other cryptocurrencies, by far, is their volatility. Since they have no support that supports them, it is almost impossible for these coins to have a stable and constant price. This is a problem that can be solved by bringing real resources to the blockchain.
Support crypt with gold?
An idea that could solve these problems revolves around the use of precious metals to support cryptocurrencies, just as they were used to support fiat money some time ago. While there are numerous challenges – legal and technical – and a constant threat of scammers, there are many who support this solution.
These are optimists who believe that we are approaching the moment when precious metals like gold can be used on the blockchain to buy things like stocks, stocks and more, without ever having legal money. This will mark the return of the demand for gold and other precious metals, and the whole idea is a bullish view on the future of the crypt and the blockchain.
However, there is also a downward view. Many banks around the world are studying cryptographic space, with some of them already planning to launch their own coins. This could potentially meet public policy goals, provide protection and security to customers and even provide privacy in payments, which the private sector has failed to do.
Although their claim is that they only have the security, privacy and protection of their customers in mind, they would effectively eliminate competition in legal currencies, and switch to an entirely digital economy at the same time. While Federal Reserve officials continue to deny that they are planning to issue their own currency, they still examined the possibility.
Cryptographic space is evolving rapidly and the forecast of the next turn is impossible. This includes the potential direction that the crypt will take, as well as intentions and potential interventions by governments, banks and the like. While precious metals can come back into play once again, this is still just a speculation, with no certainty about anything at this time. One thing is certain, that is that a big change in the financial sector is happening right now, and it will take some years for things to stabilize again. During those years, practically anything is possible.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not hold stakes in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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