Reasons for recent fall in the cryptocurrencies value
August 10, 2018 7:27 am,
One of the biggest factors of fall in the CC value is Regulators. Regulations have a huge impact on the CC prices since various countries have implemented regulations and have discussed strategies to limit them. If regulations become burdensome they could eventually cause a negative impact on the usage and price of cryptocurrencies.
Countries like South Korea; Japan has implemented regulations and legislation. A few days back it was announced that cryptocurrency traders will be fined if they don’t convert from their virtual accounts, where they were able to trade anonymously.
Japan has implemented the regulation on CCs and bitcoins after Mt. Gox, a cryptocurrency trading platform, collapsed in 2014. Although in the United States, the SEC Chairman showed interest in cryptocurrencies but also mentioned them to be unsafe. The challenge that comes up with these regulations is that even if multiple countries ban trading it isn’t necessary that the investors execute trades in other countries.
Google’s recent ban on cryptocurrency advertisement from its web pages from June is another reason for price dip. The less social presence and awareness have declined the CC values. The deceptive content of the cryptocurrency advertisement has led to the major loss in this industry. Since people are not able to see many advertisements, they have very less knowledge about how cryptocurrencies could benefit them.
Many high-profile thefts have led to sudden falls in the value of bitcoin and other cryptocurrencies have experienced. Global financial system majorly works on trust; it is being observed that people trust this mode of currency less because of their virtual behavior and no physical value. The volatility of the value of CC’s has to lead to reluctance to invest in this kind of money.