A pessimistic and optimistic view of the current situation of the cryptocurrency market and the future of digital currencies.
Cryptocurrencies, from the moment of their appearance to gaining worldwide popularity, had supporters and opponents in the professional environment of economists, investors and traders./p>
The public, as a rule, is divided into those who recognize and approve of the current speculative nature of electronic coins, and those who compare the value of Bitcoin with an air bubble and tulip mania of the mid-17th century.
What happens to cryptocurrency: two basic theories
A positive look at the future of cryptocurrency
Brian Armstrong, executive director and co-founder of coin base, believes the panic regarding the fall in demand for cryptocurrencies is premature:
“It can be scary the first time you see it. But for us, those who have been in the industry for many years, it feels like old news. When hype is up, people are irrationally inspired. When disappointment comes, people are irrationally pessimistic. ”
Truth, in his opinion, is in the middle. And the real value of cryptocurrencies is determined not by their value, but by daily transactions (by the way, many exchanges and analytical services have recently been accused of deliberately overstating the number of transactions in order to visually increase the size of the market).
Negative outlook for the cryptocurrency market
In turn, Chris Cannon, president of Cboe Global Markets and owner of the Chicago stock exchange of options, warns crypto investors. In his opinion, transactions with cryptocurrency (especially IOS) are unresolved, as a result of which, at any moment they may be outlawed. If the SEC (United States Securities and Exchange Commission) decides that ICO tokens are unregistered securities, they will instantly turn out to be worthless and worthless.
Con cannon predicts that at first the SEC will keep an eye on the ICO market participants. Then the class action lawsuits against the teams behind the ICO projects will begin to grow uncontrollably.
Which point of view is closer to the truth is up to you to decide.
Armstrong adheres to the classic trading version: the current decline and a protracted downtrend is a way to once again “bleed” and get rid of weakhands (inexperienced market participants with weak nerves). Such actions help to consolidate funds in the hands of more experienced players and generally improve the market.
Robert Hackett, a professor of financial regulation at Cornell University, said cryptocurrency is moving out of the Wild West phase into the regulatory phase.
“In the short term, we will see an increase in funds for launching group actions and an increase in litigation, but in the long term we will see a cleansing of the market. This is the legal life cycle of every new asset that is becoming very popular. ”
Whatever point of view you adhere to, it is worth recognizing one thing: cryptocurrencies go through the initial stage of their development. It is difficult to say with certainty what status Bitcoin or ether will have in 10-20 years, and how soon new coins with greater value will appear.
Invest in cryptocurrency only those funds with which you are ready to part. Thus, you will be able to protect your psyche, health and financial stability in a bear market, no matter how long it is.
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