Will Cryptocurrency Price Recover to its High Again?
The predictions made by some experts back in December 2017 related to the cryptocurrency price rise do not seem to hold true. The overall cryptocurrency market is witnessing a bearish trend and investors are no more keen to put more money in cryptocurrency. However, there is another group of people who believe that more and more acceptance by various categories of companies like gaming, infrastructure and finance will lead to increase in prices of cryptocurrencies in the coming future and hence investing in specific cryptocurrencies is a wise decision.
One of the reasons for high hopes for the future of cryptocurrency is related to the new cryptocurrency exchange platform Bakkt. This upcoming exchange “Bakkt” is being backed by ICE which is the parent company of the New York Stock Exchange (NYSE). Further, this upcoming exchange has received partnerships from some of the top corporations including Microsoft and Starbucks. Therefore, in some cryptocurrency related forums, people are advising that it is a great time to invest in cryptocurrency as the prices are low now.
Apart from all this, there are also predictions related to government regulation over cryptocurrency exchanges which is believed to impart more transparency and trust in cryptocurrency. However, there are counterviews related to government control over cryptocurrency exchanges as some people believe that any government control over such exchanges would undermine the basic decentralized and free nature of cryptocurrencies and it would give power to the governments and banking institutions to make the cryptocurrencies diluted. People have witnessed cases of frauds by cryptocurrency exchanges and some over-the-night launched cryptocurrency tokens and hence it is difficult to decide at this stage whether government control would be beneficial or the entire Cryptosystem should be left free from government control.
There is another group of people who are concerned with the negative environmental impact of cryptocurrency mining. With more people joining the mining pools and getting into cryptocurrency mining, it is becoming difficult to solve the complex problems through which cryptocurrency transactions get validated and new cryptocurrencies are minted. In order to successfully mine cryptocurrencies, a massive amount of electricity is needed and it is estimated that by the end of the year 2018 electricity consumption of Bitcoin miners will surpass the electricity consumption of entire Argentina. This situation can lead the environmentalists to put pressure on the government against cryptocurrency mining.
Despite the pull and push factors from all the sides related to cryptocurrencies, more and more institutional investors are willing to invest their money in cryptocurrencies if some auditing and security features get introduced into the cryptosystem.
Author Intro: The author S Kumar is a freelance cryptocurrency writer. He has also written articles in various niches like health, investment and marketing.