The current crash is certainly one of the worst ever in the crypto industry. At this point, one has to ask whether cryptocurrencies in general can survive this development. Currently, it does not look like the prices will significantly increase and recover, the last highs seem further away than ever before. Currently, both Ethereum and Bitcoin are approaching particularly dangerous marks. While Bitcoin is struggling to reach the 20,000 US dollar mark, Ethereum is on the verge of falling below the 1,0000 dollar mark. The big problem is that these prices have a rather symbolic value. Both cryptocurrencies have not been below these marks for a long time and the market could react extremely if one of the two currencies falls below these marks.
The problem with this, however, is that many other cryptocurrencies are also dependent on what the big values do. These dependencies can also have a negative impact on other cryptos, especially since Bitcoin, as the oldest digital currency, has a certain symbolic character for the entire industry. Bitcoin’s successes have caused a stir around the world. Everywhere there are the stories of people who were so crazy to have taken all their money and invested in Bitcoin, who later became multi-millionaires just because they trusted the currency.
But this is exactly where we have the big problem, trust is the only thing cryptocurrencies, except stablecoins, can really exist on. There is no physical counterpart at all and this is particularly well demonstrated by the extreme prices at the moment. As bitcoin profit can clearly execute, there are now already some other interesting concepts to still make money with cryptocurrencies despite everything, but even that can only work as long as cryptocurrencies have not yet disappeared.
While the Ethereum Blockchain still has other concepts on the market that support the currency, such as NFTs and SBTs, which are to be launched at the end of the year, the creators around Ethereum are also currently developing a new consensus method with which significant energy savings should be possible. Thanks to proof-of-stake, it should be possible to reduce Ethereum’s energy requirements by 99.8% in the future. Although this is still pie in the sky, it ensures that the points of criticism that have always existed in the major currencies are attacked.
Bitcoin in particular is a cryptocurrency that was well-intentioned, but its mass distribution has led to increasingly heavy computing operations. As a result, a single Bitcoin transaction now costs significantly more electricity than an average German household consumes in 3 months. That is already enormous and one can understand environmentalists who go to the barricades and demand a Bitcoin ban.
However, it is questionable whether a Bitcoin ban should really ever come. In Germany, at least, it is rather unlikely that the cryptocurrency will be banned and Bitcoin will not go bankrupt so quickly. Certainly, the air is currently a little out, but that is also no wonder. Based on the current global political situation, the inflation rate and especially the fact that the Bitcoin, according to experts, was massively overvalued anyway, the prices are falling. A ban should thus also be out of the room, because the attractiveness of bitcoin trading has fallen significantly. Certainly, profits can still be made, the volatility is still given and the courses continue to fluctuate, as before, however, only for short-term, highly taxed income.
Thus, most traders, especially small ones should already be out of it and no longer interested in making a quick buck with cryptocurrencies. This allows the shifting of values exclusively for large investors and companies, banks and other institutions that can write off their losses well right now. All this is of course at the expense of taxpayers who themselves, thanks to small investments, hardly have a chance to really make much money with cryptocurrencies, but perhaps that is exactly the reason for the current so dramatically falling price, a market regulation that was designed for the long term.
The post Will cryptocurrencies survive? appeared first on TOP News Austria – News from Austria and around the world.