Well, it’s falling apart for Bitcoin and cryptocurrenices again.
The entire complex is taking it on the chin with Bitcoin falling below $11,000 at one point according to at least one exchange’s pricing. Ripple is a complete disaster:
Although South Korea has backed off a bit on a crackdown that has rattled sentiment in the new year, investors still seem to be concerned.
On Tuesday, in an interview with TBS radio, South Korean Finance Minister Kim Dong–yeon said shutting down the exchanges is still an option. He went on to say that although the Justice Ministry wants the exchanges shuttered, other ministries are concerned about possible blowback. Still, Kim said all ministries “agree that there is irrational speculation in cryptocurrency and rational regulation are needed to curb it.”
“The pullback seems to be coming from a lack of buyers in Asia,” Mati Greenspan, senior market analyst at eToro, told CNBC in an email, adding that “Japan and South Korea usually dominate this market but over the last few days, the volumes have been dropping steadily [and] this morning, the combined volumes from these two countries dropped below 30 percent.”
You’ll also recall that on Monday, Bloomberg said China is looking to crack down on “alternative venues”. Specifically, they’re going to “block domestic access to homegrown and offshore platforms that enable centralized trading [and] target individuals and companies that provide market-making, settlement and clearing services for centralized trading.”
Tuesday’s slide took Bitcoin to its lowest levels since early December:
Meanwhile, European Securities and Markets Authority Chairman Steven Maijoor told Bloomberg in an interview in Hong Kong that Bitcoin investors “should be prepared to lose all their money.”
“It’s called a currency but the very important characteristics of a currency is not there,” he went on to say before telling you what you already know: “It is extremely volatile.”
Yes, yes it is. Just look at what it’s doing right now.
We’ll leave you with the heatmap which is a sea of red:
Should be at my buy price of $200 soon.
I think H’s very valid point in most of his recent crypto articles – is that as exchanges are closed and or pressure is put to reduce mining activities (China’s BitCoin transactions are down more than 50% in just the past year, now Korea is on an even more aggressive path), it really doesn’t matter what you “believe” about the disruptiveness of private cryptocurrency technology – as it becomes harder and harder to physically trade them. You only have to look at the BitCoin Index from just after mid Dec. 2017 to see the effect of the Asian pressure on BitCoin valuations. (https://www.marketwatch.com/investing/index/NYXBT?countrycode=XX) and or (https://www.marketwatch.com/investing/stock/GBTC).
Unlike past dips and resting periods for cryptos – this one isn’t from market boredom resistance of crypto aficionado investors, it’s from real world, massive economic and regulatory impact pressures that attach the conversion of cryptos to and from fiat cash) and they aren’t going away. Quite the opposite – national treasury regulator action is just starting against private cryptos.
To BitCoin’s credit, it has succeeded in convincing the giant economic powers that be – that cryptocurrency/blockchain technology is a viable technology to use in more effectively managing national currencies and securing high value commercial transaction devices. At the same time they are forcing them to compete with private currencies, or have their national economies put at risk by reducing the impacts of treasury economic steering tools. The fact that national treasuries and major financial institutions are coming up with their own crypto products and devices right now – assures that private cryptocurrencies are already superfluous.
For the trading cult that believes cryptos are competing with the advent of ‘computerized 3D bread making and slicing technology’ as the most disruptive current technology – the longer the crypto value trend curves continue down or even if they remain flat, the more assured the dissolution of the crypto cult population is – as the next new “shinny tech thing” grabs their attention. Worse, the lower the crypto valuations get – the more of a “self-fulfilling prophesy it becomes of the selling it generates as crypto owners protect any gains and or limit their losses. This process is already going on. As the crypto cult attention span rotates on – so does any future for private cryptos – and as well their valuations.
From a longer term perspective – for cryptos as exchanges close – it also reduces if not completely eliminates the attraction and the probability that cryptos will gain any more credibility as a commercial exchange medium – which is already nil for the knowledgeable that know that actual commercial use of cryptos remain under 1% of their transactions. You know a means to actually buy stuff. Meaning as cryptos become less and less like currency – it becomes more and more obvious that cryptos are just one more form of private currencies – like all the others over the past 3,000 years that have become extinct.
Durwood M. Dugger,
your bitter envy is beyond ludicrous. Instead of coming up with these huge text walls ripe with false assumptions and a very flawed view of what crypto-currencies stand for, you could have bought a few years ago and become a obscenely rich man by now…
Clueless delusional weirdos like you need to understand the ship has already sailed, and you were not on it… Try to anticipate the next big opportunity and do better next time. Whether Crypto currencies tumble 20, 50 or 99 % don’t even matter anymore; astronomical fortunes have already been made. Wake up & smell the coffee !!