What can break the value of cryptocurrency in 2018.steemCreated with Sketch.

in #cryptocurrency7 years ago

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During the last year, cryptocurrency gained a massively big popularity, making everybody to talk about it - starting from regular sellers and ending with country leaders and executives of central banks.

Many write about the price bubble in the cryptocurrency market. The large part of the finance market analysts are aware of its existence, however, nobody knows when it is going to happen and with what it is going to end.

What could cause the price collapse in 2018? Some of the biggest threats to cryptocurrency might be these:

Regulators will get worse

This seems to be the main risk for cryptocurrency. Regulators all around the world are slowly moving on from warnings to openly aggresive activites, whilst trying to control the overheated cryptocurrency market and everything that is connected to it. Last year, China's government banned cryptocurrency exchanges, in turn now they are going for the miners of cryptocurrency. India and South Korea are moving in the same direction.

At least for now the market does not really take these unfriendly attacks to the heart and is continuing to exchange cryptocurrency. However, the situation might change, if this tendency becomes worse.

Hackers will become greedy and more shameful

Anonymous is a tree with 2 ends. It helps not only the honest citizens hide their income and money operations from the state authorities but also hackers to steal crypto money unsanctioned using vulnerability cryptocurrency in the exchange's security systems and not being afraid that they will be found and caught. Mt.Gox exchange in 2001, Bitfinex in 2016 and NiceHash in 2017 - these are the loudest and more noticeable cases. In truth, there have been much more. Experts are frustrated about this tendency and they say that 2018 may become the year of cryptocurrency theft which most certainly would undermine the trust that investors and traders put in cryptocurrency.

The whales of cryptocurrency will swim to a different coast

The big investors and pioneers of the cryptocurrency market who hold a large number of coins and who have been saving them for years have begun to slowly trade them away. In the long term, it will benefit the market, making it more balanced and not so one-piece. But the big investor short-term fixation on profits might create panic and fleeing in the masses.

Fake coins and projects will grow like mushrooms after rain

You cannot surprise anyone with fake coins anymore. Frauds don't even have to pay anything to copy known titles with little differences - just like the counterfeiters of goods do in China with popular brands - and sell them to the wide public, whose eyes have been blurred out by terms like bitcoin, mining, the blockchain, tokens and so on.

Investors will start to freeze their profits

Owners of cryptocurrency have started to close down their speculative positions and are freezing their profits. It was obvious when the value of bitcoin came close to $20,000. A correction after a lasting and a notable rise in price is normal, however, taking in mind the cryptocurrency's high volatility and comparatively low liquidity, a downwards correction can quickly transform into an avalanche-like price collapse.

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