Why is cryptocurrency losing a bit of value?

Why crypto is losing value

A cryptocurrency contributes to being a virtual or digital currency which is designed for working as the medium of exchange. It makes use of cryptography for securing and verification of the transactions. They are also helpful in controlling the development of new units of specific cryptocurrency. Crypto currencies are considered to be limited entries in a particular database which cannot be changed by anyone till certain conditions get fulfilled. These currencies are now a global phenomenon which is known to a lot of people. Crypto currencies are believed to be the hottest investment opportunity which is available in these days. A plethora of people have become millionaires with the aid of the Bitcoin investments.

What Drives The Prices Of The Crypto currencies

The rates of the crypto currencies go up and down usually. According to different researchers, as a big financial player signs, a specific partnership with the block chain company, the price of the cryptocurrency is at a steady rise. In a similar manner, as the negative news comes in the papers, the rates are seen to go down. In addition to this, the simple and easy act of buying and selling these crypto currencies can result in the drop or enhancement of the price. This is related to the supply and demand of the market.

Here Are The Top Reasons Why Crypto Losing Value:

The Finance Ministry Statement Of India

In accordance with officials, criminals go for cryptocurrency investment for laundering money. Indian is known to liken the market for reducing their usage with the aid of Ponzi scheme. In accordance with the finance minister of India, the Government will take all the prerequisite measures for the removal of crypto-assets in the different illegitimate activities. They also aim to take different measures for the removal of these crypto-assets as an integral part of the payment system.

US Crackdown

The SEC has started examining the crypto currencies in a careful manner. It has paused some of the ICOs which they think to be suspicious. Due to this reason, speaking of the ICO market, the regulatory hurdles and regulations are enhancing at a steady rate. cryptocurrency is considered to be the decentralized form of cash. Thus, there is a drop down in the crypto currencies if there is an attempt at controlling it or in case there are any sort of regulatory hurdles.

Facebook Ban On Advertisements

Recently, Facebook has announced that it will not permit the advertisement of crypto currencies, especially for ICOs. Most of the ICOs were advertised on Facebook heavily in order to find new investors with an eye to gathering the hype. As Facebook does not permit most of the ICOs any longer, they will not gain success in marketing them extensively.

South Korea Crackdown

South Korea is cracking down on the crypto currencies in a heavy manner. The primary reason for this is that most of the global investors of the crypto currencies live in South Korea. Though the population of South Korea is relatively small, you will be amazed to know that the density or number of investors in the country is really high. This is considered to be one of the primary reasons why the change in the regulatory framework in South Korea will influence the complete cryptocurrency space. Today, it has become hard for criminals and children to trade in the crypto in this country. The exchanges are a prerequisite for the collection of documents and verification of the identity prior to letting them trade. Though it is really hard to predict when there will be a swing in the price, it is believed the crypto currencies will stay.

However, you need to keep in mind that the crypto currencies belong to the category of high-risk investments. There is a heavy fluctuation in the cryptocurrency value in the marketplace in comparison to different other assets available in the market. In addition to this, it is unregulated partly. Hence, they will always be at a risk of getting outlawed in specific jurisdictions. Today, several concerns have come up that are related to the decentralized nature of the crypto currencies and their capabilities of being used anonymously and completely. The authorities across the globe are worried about the appeal of the crypto currencies to the traders of the illegal services and goods. In spite of all the cryptocurrency devaluation, a wide assortment of people invest in crypto currencies on a regular basis with an eye to reaping huge benefits.

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