It seems that cryptocurrencies like Bitcoin wouldn’t be able to stand the test of regulations. According to latest reports, all the major digital currencies, including Bitcoin, Ethereum, and Litecoin, Neo, Ripple and many others have lost their value amidst speculated regulations. Just talking about the market leader, Bitcoin value has dropped down to $11000.
Decline in the Value of Cryptocurrencies
According to CoinMarketCap, significant digital currencies saw a decrease in their value on Tuesday. Prominent cryptocurrencies witnessed a double-digit loss. They traded for 13 to 25 percent lower price. Ethereum that has just touched the $1000 mark at the start of 2018 is now 13% down. Bitcoin that was trading for $20,000 during last month of 2017 has dropped 19% lower in value.
Novice digital currency investors who are looking for the alternatives of Bitcoin might have to rethink their investment decisions. All the possible substitutes are meeting the same fate of decline in Bitcoin value. Ripple plunged to $1.15 from $3.65. Ripple, Monero, Iota, and Bitcoin cash saw a drop of 19 percent, 15 percent, 20 percent and 13 percent respectively.
Fall in Bitcoin Value
Leading cryptocurrencies like Bitcoin, Ethereum and Litecoin didn’t saw a significant decline as compared to other currencies who went down to 25%. The Bitcoin value on Tuesday was around 11000. Bitcoin is now nine years old; after crossing the psychological barrier of $10,000, its price soared to $19000 within few weeks. Now, speculated regulations in Asia and South American country Brazil are acting as speed breakers for Bitcoin value. If such a robust regulatory framework becomes practical, then digital currency investors would be in loss.
China, Brazil, and India to Regulate Cryptocurrencies
According to media reports, China plans to block the access of domestic market to centralized, offshore and Chinese cryptocurrency exchanges. Same response came from the South Korean Justice Minister, Park Sang Ki, who heralded the ban on the trade of cryptocurrencies. According to media reports, BRIC countries are likely to bring tight regulations for digital currencies. If countries like those of South East Asian, started regulating the cryptocurrencies, then their trade would come to a halt. Given such scenario, those who have invested heavily in digital currencies might face an irrecoverable loss.
Many tech companies are investing in mining facilities and issuing the ICOs. Therefore, it is hard to believe that they fear any regulations. For Blockchain technology being safe heaven, many businesses like Dubai Real Estate have shown interest in accepting Bitcoin and other such currencies. Maybe, the governments are facing pressure from financial institutes which might be fearing loss due to the rise of Bitcoin value.