For the better part of a decade, crypto currency has held a big question mark over its head for whether or not it would become the next big thing – the held believe that decentralized currency was the way forward and all of the hype surrounding it is what allowed big names like Bitcoin and Ethereum reach the high points they’ve seen with the former managing to sit at over $62,000 earlier this year. Difficult has fallen on crypto since then however, seeing big drops and plenty of uncertainty, but is it too late as an investor to get involved with crypto?
Perhaps the biggest problem still exists around uncertainty in mainstream use, whilst it is available as a payment option for the likes of online gaming services found here, it has yet been unable to find its way toward bigger options as one promise for use with Tesla pulled out of a possible connection due to environmental concerns that grew around crypto – because of this it still holds a relatively negative view by some, but it is something that’s looking to change too.
(Image from skalex.io)
Proposed legislation within Europe could have more transparency requirements put in place for those trading in crypto, this change would mean that those looking to trade or use crypto would need to supply their name, contact information, and everything else that would be required by standard traders – currently whilst all transactions are public, they only show between which wallets, and no additional information is needed. This does have a drawback as it in many ways defeats the initial purpose of decentralised currency – anonymity. And introducing these changes could alienate the audience that are most invested in the currency, particularly if there’s no choice in the matter and the changes become matter of fact.
Lastly comes the growing concerns around crypto as a whole and its future – with the current crackdown on crypto in China that could force the large industrial scale mining operations to move which account for 70% of all crypto, and the exit for the co-founder of Ethereum citing security concerns for his own position in crypto, large drops continue to be seen and add further volatility and instability to an option which has historically suffered from these factors and will continue to do so.
It may be enticing looking at the lower prices which could have historically been much higher and feel it’s a great time to buy in whilst the prices are so low, but the uncertainty and planned changes make it much harder to know whether or not prices will pick up in the future, or if the changes that are needed for success will be found.