Don’t Worry About Crypto Currencies
In the past month, the prices of cryptocurrencies, especially Bitcoin has taken a nose dive. This has led to a lot of negative speculation and a lot of “we told you so” admonishments from the establishment.
The reason a lot of people find cryptocurrencies scary is that it is the completely open source and doesn’t fit into the established protocols when it comes to valuation or any other parameter. Trade pundits have long warned about the cryptocurrency bubble, and the sudden fall in prices has only gone on to cement these viewpoints.
Will Cryptocurrency investments fail?
The present market is being fuelled by fear. Everyone from trading specialists, as well as governments, is cracking down on the cryptocurrency wave and people are deferring to experts’ opinions on the same. However, recent reports indicate that the spiraling prices have now stabilized and regulatory authorities are taking measures to ensure that the volatility that usually accompanies cryptocurrencies is established to a great extent.
In the US, the Security and Exchanges Commission (SEC) is going to approve a Bitcoin exchange-traded fund. This will mean that valuation will be easier and investors who don’t want to use the traditional Bitcoin trading platforms can invest in ETFs instead.
In the meantime, the Intercontinental Exchange, the parent company of the New York Stock Exchange’s parent company in collaboration with Starbucks, Microsoft and the Boston Consulting Group will be rolling out a Bitcoin ETF in November to be used in its trading platform Bakkt.
While some countries have banned cryptocurrencies, the highest rated stock markets are taking steps to ensure that they can monitor the workings of the cryptocurrency to ensure there is some form of regulation.
Why did the price fall?
If there is one thing that the market has ensured is that speculation will drive the price up or down of a specific commodity. In the case of Bitcoin to the same had happened. When the prices began spiraling upward, a report was released stating that the investment giant Goldman Sachs was going to close down its proposed cryptocurrency desk before it even took off.
While the company itself responded saying no clear decision was taken, that one news report sent the cryptocurrency into a spiral and led to a lot of people pulling the value of the currency down as well as calling it a bad investment.
Currently, regulatory authorities are working against the clock to make sure that cryptocurrencies come under some kind of regulatory umbrella so that it can be made a reliable investment for users.