I believe that many of you are aware that the cryptocurrency market has taken a massive plunge into the hole of seemingly no return. While many fought against the crypto market back then could start uttering sentences like “I told you so.” It is not the end of the crypto market per se.
Undeniably, 2018 is not a good year for the cryptocurrency market. However, if you were to observe the mechanic of the blockchain, it still serves its purpose where the particular niche is still using the technology.
Although the price we see today is not the same as the 4th quarter of 2017, it is a significant correction by ridding out the overly enthusiastic player. Euphoria is no longer in the crypto market, and that means for real business and value to be built.
According to coinmarketcap, the total market capitalization of the cryptocurrency market remains at 255 billion USD as of the time of writing. This data may translate that the market is still significant but somewhat less compelling as compared to previous year.
The fallen market
Lately, the market is down again due to the orders of the Japanese financial regulators to implement stricter rules to prevent illegal activities such as money laundering.
Following the orders from the regulation, one of the top exchange called bitFlyer has halted new deposits; creating another what seems to be a panic reaction from the market.
The implementation from the Financial Service Agency (FSA) is an excellent move to force all major exchanges to upgrade/update their Anti-Money Laundering (AML) and Know Your Customer (KYC) system.
With such system in place, investors are protected from illegal abuse by a specific group of people. The absence of a sound law allows the lack of proper management of the public fund; which explains the various hacking of funds for the past few months.
We cannot say a market is dead when financial regulators are still finding ways to regulate it. Such thinking is a hypocrite. Imagine, on the one hand; you say its worthless while on the other; you are trying every means to gain control of it.
I wouldn’t say that we should invest heavily in the cryptocurrency market because it is falling badly right now. Instead, I would encourage you to stay focus on the implementation of blockchain and the actual value that it is bringing to the industry.
People are always afraid of the unknowns. Once something substantial is apparent, the masses would hop in to do the same thing as everyone else. One might wonder if the blockchain industry could once again outperform the market and live to see the new light. Only time can tell.
As of now, we are looking at the same phase as the internet was one introduced. Bleak but has the potential of something great.
P/S: I am not an advocate for any cryptocurrency as an investment. Investing in cryptocurrency should remain as one’s interest and risk. Only invest in what you can afford to lose and do your due diligence.