“High profits” in 2017 attracted into the crypto market huge amount of non-professional investors, most of them even do not understand basic principles of what crypto is, what are the difference in technology and what are potential risks. The whole lot of famous economists predicted collapse of the Crypto market, among them: Warren Buffett literally said: “I can say almost with certainty that cryptocurrencies will come to a bad end.” Another notorious economist Paul Krugman (nobel prize winner in Economy) said that it is a bubble and no one understands it. On the other hand we have Bill Gates, who was on the other side of the “power” stating that no one can stop cryptocurrencies now. But all controversial info we already heard long ago, and last year global market capitalisation of cryptocurrencies increased for 34 times!
However, in the begging of 2018 we could see what real dangers can affect cryptocurrency market. Let us talk about them.
“Danger” number 1 (Bloody market is not stable at all).
On the cryptocurrency market I am a pretty new person (even I have a Masters degree in economy), however it did not take me long time to realise that this market is GIGA volatile and to predict what is going to happen almost impossible. Be honest guys NO ONE predicted this recent collapse of the market to the extent it has happened.
Fact: Market reacts on everything from rumours, till technical faults. Furthermore, market is relatively small any big investor or a group of significant members are able to affect market to descent extent.
“Danger” number 2 (it is decentralised).
Yes, exactly, you have heard me correct. I can not imagine that any government or financial institution will allow almost half a TRILLION dollars market to be free of regulations, fees and control, this is UTOPIA. Every time when we buy something with crypto we transfer funds and BIG FELLOWS do not get their fees for transactions. To understand what money banks earn on transactions we can look at the following info (In 2013 only 20 banks earned almost 32 billion on transactions). Do you believe they will allow these money away with no WAR =), I doubt.
Fact: All governments today trying to control cryptomarket, in most cases in ugly way lobbying someone's interest.
Conclusion: I personally do not know if crypto market is going to be destroyed or it will somehow evolve to something new, where we general public, will be free of money fees and currency exchange. What I do know for sure in the time of Chaos be calm and patient and you will do less mistakes than those who are in a hurry. =)
Have fun people, hopefully this masterpiece was interesting to read =)!
