The New York Times edition selected 5 events and trends that could affect the sharp depreciation of the main crypto currency.
Lack of regulation of infrastructure and exchangers
Most cryptocurrency trades occur outside USA in the absence of regulatory oversight. This gives investors more freedom, but carries risks.
When the authorities managed to master the cryptocurrency market, the situation did not develop in the best way.
Securities and Exchange Commission (SEC) start writing fines to companies that violate the rules for handling securities during Ico – Release of main tokens. In November SEC The two companies' fines amounted to $ 250,000 and forced them to recognize tokens as securities, with all subsequent liabilities.
Cryptocurrency is managed by developers – this is not always good
In Mrs Pay attention to a series of hard forks – the blockchain division of the main cryptocurrency. So, first from Bitcoin, because of differences of opinion in the community, last year the Bitcoin Cash was separated.
Forks that are often questioned are one of the key qualities of cryptocurrency – their limitations.
Cryptocurrency must solve real problems. That didn't happen
It is believed that Bitcoin will facilitate instant cross-border money transfers. Ethereum should tie millions of computers from all over the world. So hundreds of other tokens were created with good intentions. However, technical restrictions have slowed down the daily use of cryptocurrency – and eliminated restrictions too slowly.
The government can do cryptocurrency – and better overcome their regulations
Managing Director Mfv In November, Christine Lagard read a speech about why state central banks should see issuing their own electronic money. They are able to facilitate the existing payment system.
At the same time, public administration will reduce the level of mistrust of the money. These statements can significantly cool interest in existing non-state tokens.