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Bitcoin, Ethereum, and Ripple Drops in Price

bitcoin

Cryptocurrencies can be considered highly volatile. Though Bitcoin was able to reach almost $20,000 right before the end of the year, it is also true that the entire market looks bearish. Though there could be indications that crypto investors are looking to have a wait and see approach, Bitcoin’s price dropped today by 12%. The same goes for Ethereum and Ripple that both went down by 10%. And currently, Bitcoin is trading below $7,000.

The latest decline still comes from regulatory concerns and declining transactions, not to mention the high power consumption attributed to mining cryptocurrencies. But come to think of it, if you will look at Bitcoin from last year’s price, it is still up by over 100% since it was only trading for less than $3,000 last year.

1 in 3 Germans See Bitcoin As Investment

In fact, according to a report by German retail bank Postbank, 29% of Germans believe that cryptocurrency is a great investment opportunity. It was a result of the Postbank Digital Study 2018 that interviewed 3,100 Germans between February and March this year. This was the same time when the entire crypto market is already going bearish.

However, keep in mind that it is just a small chunk of the total population. In addition to this, Postbank Chief Digital Officer Dr. Thomas Mangel mentioned that youngsters shouldn’t stick to cryptos mainly because it is the “type of investment is highly speculative”.

It is also important that crypto investors should be aware of the rules and regulations. For instance, a majority of people aren’t even aware that crypto gains are subject to taxation in different countries. Mangel even commented that “Due to the media hypes, many people overestimate their knowledge of opportunities and risks of cryptocurrencies as an investment”.

And this phenomenon isn’t only happening in Germany. In South Korea, a survey conducted by the South Korea Financial Investors Protection Foundation mentioned that majority of 20-year-olds prefer investing in crytpocurrencies compared to conventional financial instruments such as stocks, and bonds.

Venture Capitalists and Cryptos

Venture capitalists are also diving into the world of cryptocurrencies, There are those that even established their own ICOs, For instance, if you will ask Tim Draper, who is the founder and Managing Director of Draper Fisher Jurvetson, “this is bigger than the internet, It’s bigger than the Iron Age, The Renaissance. It’s bigger than the Industrial Revolution” He even predicted that by 2022, Bitcoin could reach $250,000. He also added that “this affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined”.

It is possible that there could be an impending bull-run in the market once there is regulatory clarity within the industry. The good thing is that there is progress in terms of regulations relating to cryptos.

There are even some companies that are even working with the SEC. In fact, Jay Clayton who is the chairman of US Securities and Exchange Commission recently mentioned that cryptocurrencies can’t be considered as securities. On the other hand, ICOs should be considered securities according to Clayton.

 

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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