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2018 was not sweet for cryptocurrencies. Bitcoin has lost up to 80% of its value since it peaked in mid-December last year. By 2018, regulatory changes abandoned the entire cryptographic market. However, there were certainly points where Bitcoin was actually seen stable. For months, it remained at around $ 6,200 to $ 6,500 range just to go down after the Bitcoin Cash fork.
There was a point where Bitcoin fell below $ 3,500. But it was not just Bitcoin Cash's fork that caused this. It was a rather large number of accumulated problems, such as regulatory challenges to the decrease in the hash rate within the network.
There were a number of critics encrypted by Warren Buffet at Nouriel Roubini. The recent decline was even called by Roubini as a bust while Buffet compared the scams to rat poison.
And now, UBS Paul Donovan adds to the critics of the criptos. He said that "I come to bury Bitcoin, not to praise him". He added that "These things would never have been the currencies, they will not be valued at any time in the future". He also said that the criptos are "fatally imperfect".
In 2017, Donovan was already skeptical of Bitcoin. Although Bitcoin has gathered almost at almost $ 20K, although it only started at $ 1k in 2017, Donovan believes this is "destructive" in the long run.
Problems that have the encrypted
There are a number of problems that the cryptography market has to face. For example, there is the fact that regulatory clarity is still a problem in different parts of the world. You have China that has promised to ban the activities related to encryption.
You also have the Securities and Exchange Commission to track the companies that were using initial coin offerings (ICOs). The agency is now tracking down companies and even exchanges that list tokens that have been considered as unrecorded securities. Recently, two companies have been forced to pay a fine, while celebrities such as Floyd Mayweather and DJ Khaled have been charged to promote unregistered securities.
Another problem that has plagued the encrypted is the possibility of price manipulation. In fact, SEC President Jay Clayton said the agency will be comfortable in approving Bitcoin's ETF applications if this problem has already been addressed. In recent months, the SEC has rejected a number of Bitcoin ETF applications including the Bitcoin ETF application of the Winklevoss twins.
And now, as the price of Bitcoin has declined, a good number of miners have already closed their mining facilities. For this reason, it has reduced the total hash rate in the network, making it even difficult to restore Bitcoins.
Future of Bitcoin?
So, what's in store for Bitcoin and for the crypto market? Mike Novogratz predicted that Bitcoin may have already hit the low of $ 6,200 to $ 6,500. Unfortunately, this was not the case. Now, there's also a prediction that Bitcoin could hit $ 2,800.
Will institutional investors be involved within the next year? This will shake things and create another race? Tom Lee also said that we are in the gold age of the crypt despite the bear market.
