The cryptocurrency market did not have a good year in terms of price performance. The decline may also be related to several problems that have hit the market in the last 12 months.
For example, in January, Japanese cryptocurrency the Coincheck exchange was violated. This attack resulted in the loss of 523 million NEM tokens (XEM), close to $ 500 million at that time. This situation has seriously affected the market and has marked a point of inflection in the regulatory environment in Japan.
This situation showed the risks associated with storing virtual currencies in an online platform. The best advice is to store virtual currencies in a cold wallet without being connected to the Internet.
Although the exchange has returned user funds, the effects on space and on the NEM have been evident. Now, the exchange is working again.
There is another exchange that has been hacked for around $ 195 million. BitGrail is an Italian exchange that was targeted by a group of hackers who stole 17 million XRB (currently NANO).
Since then, Japan has improved its regulatory environment. He created new regulations for exchanges and all crypto the company that wants to operate in the market must be previously approved by the government.
Another aspect that affected the credibility of some projects was the scandal of the TRON white paper. The TRON white paper has been accused of being copied by many other projects.
– Bedeho (@bedehomender) January 7, 2018
Justin Sun, the founder of the TRON Foundation, said at that time that this could be related to the fact that they did not have an office in San Francisco to work on this. In addition, he provided the latest Chinese version of the white paper.
Another thing that the market has experienced this year has been a downward trend that has influenced the price of most virtual currencies in space. Since Bitcoin reached $ 20,000 by the end of 2017, it fell during different time periods,
Bitcoin fell below $ 7,000 in February for the first time in 2018. During the next monhts, it reached $ 6,000 but tried to recover on several occasions. However, it fell below $ 6,000 in November and reached its lowest point in more than a year when it was trading at $ 3,300.
Nouriel Roubini, an economics professor known for having predicted the global financial crisis in 2008, was a very present figure this year in space. From the beginning, he attacked virtual currencies, Bitcoin (BTC) and industry experts.
He was present at an audition organized by the US Senate Committee on the banking, housing and urban affairs sector in October. During the event, he attacked Peter Van Valkenburgh, director of research at the Coin Center, and was also very hard against virtual currencies. For example, he said that no one uses Bitcoin more than criminals and terrorists.
In addition, he had a public discussion with Vitalik Buterin, the co-founder of Ethereum. He mentioned that Buterin is a scammer and stole 75% of all available ether. However, Buterin explained that he did not have this amount of money.
99% of the encrypted land is a shitcoin exchanged for another shitcoin. And the average shitcoin has lost 90% or more of its value in the last year. So Crypto Land is Crap Land, a crazy black pit with serious Freudian scatological obsessions swimming 24 hours a day in their stinking shit.
– Nouriel Roubini (@Nouriel) 11 October 2018
One of the most damaging things that hit the entire ecosystem in 2018 was the hash war between Bitcoin ABC and Bitcoin SV. On November 15, Bitcoin Cash (BCH) reported a network update. However, the community was divided on how the network should be prepared to scale. This is why supporters of Bitcoin SV and Bitcoin ABC have decided to start a hash war.
Supporters of Bitcoin SV (BSV) were Craig Right of nChain and Calvin Ayre of CoinGeek. Opponents of Bitcoin SV and proponents of Bitcoin ABC's proposal were Bitmain CEO Jihan Wu and Bitcoin.com Roger Ver.
Only a few hours before the network was upgraded, the market fell to its lowest point in over a year. In fact, Bitcoin dell down to $ 3,300 after this conflict in the network. Due to the fall in Bitcoin prices, the network also lost part of its hash rate. Bitcoin hash has lost about 50% from the August high.
During this hashware, the Bitcoin SV miners were not able to dominate the chain. In the end, they decided to split from the Bitcoin Cash network and create their own currency (BSV).
This year the market has experienced very negative things, and these were the most important. However, there are many important things that are worth mentioning. Bitcoin has experienced real growth in terms of development. Other virtual currencies also experienced a positive year taking into account their developments.