The edition of The New York Times chose 5 events and trends that could affect the sharp depreciation of the main cryptocurrencies.
Lack of regulation of infrastructure and exchangers
Most cryptocurrency trading takes place outside USA in the absence of regulatory oversight. This gives more freedom to investors, but carries risks.
Where the authorities did get to the control of the cryptocurrency market, the situation is not developing in the best way.
Securities and Exchange Commission (SEC) began writing fines to companies that violated the rules for handling securities during Ico – primary release of tokens. In November SEC fined two such firms for $ 250,000 and forced them to recognize tokens as securities, with all the ensuing obligations.
Cryptocurrencies are managed by developers – it's not always good
AT Nyt Pay attention to a series of hard forks – blockchain divisions of the main cryptocurrencies. So, first from Bitcoin, due to disagreements within the community, last year Bitcoin Cash separated.
Frequent hard forks questioned one of the key qualities of cryptocurrency – their limitations.
Cryptocurrencies had to solve real problems. This did not happen
It was believed that Bitcoin will facilitate instant cross-border remittances. Ethereum was supposed to tie together millions of computers from around the world. So hundreds of other tokens were created with good intentions. However, technical restrictions have slowed down everyday use of cryptocurrencies – and eliminate restrictions too slowly.
Governments can do cryptocurrency – and better cope with their regulation
Managing Director Mfv In November, Christine Lagarde read a speech about why state central banks should look at issuing their own electronic money. They are able to facilitate existing payment systems.
At the same time, public administration will reduce the degree of distrust of such money. These statements could significantly cool interest in existing, non-state tokens.