By the end of 2017, Cryptocurrency as a whole had reached amazing heights, but by 2018 it had all dwindled down. It’s as if $500 billion dollar value had never existed. Bitcoin, the number 1 cryptocurrency accounts for $200 billion of the lost funds. Many across the globe may be wondering why the cryptocurrency market is tumbling down. Here are a few moves that were big game changers for virtual currency.
- Hacking – Hacking has always been one of the big concerns when it came to the trading of virtual currency. Cryptocurrencies have a big history when it comes to hacking. Most recently CoinCheck, a popular Japanese exchange lost $500 million worth of cryptocurrencies. There have been similar hacks in the past that have resulted in a lot investors losing their gains.
- India Outlaws Cryptocurrency – India was one of the biggest countries to jump onto the cryptocurrency craze. It took the country by storm. That said, when the country’s finance minister Arun Jaitley announced that they were going to take every single measure to virtual currencies from the country.
- Tether and Bitfinex – Bitfinex and Tether are causing a lot of suspicions with the cryptocurrency community. This might have something to do that Tether is being backed by cold hard cash in the form a bank reserves.
- Facebook Bans ads – Facebook, the biggest social media website in the world has announced that they would be banning cryptocurrency, ICO and binary option ads from their website. They have claimed that these are the source of a lot of fraud and manipulation of unsuspecting individuals who might get sucked into a convincing scam.
- The Volatility of Virtual Currency – Cryptocurrencies have always been volatile, but entering the mainstream has made them more volatile than ever. Let’s not forget to mention what this means in the face of scrutiny at the hands of America and countries across Asia.