• From its high in November 2021, the bitcoin price has dropped by roughly two-thirds, and the total market capitalization of all cryptocurrencies has dropped from about $3 trillion to less than $1 trillion.
• There will be a lot more regulation aimed at protecting investors, promoting accountability, and limiting risk-taking. Financial education is still a serious issue.
• Regulatory clarity might potentially help such innovative solutions by lowering the danger of economic uncertainty or the facilitation of illegal activities.

The Crashing Of Dreams

Cryptocurrencies are one of the heated topics of this century. Everyone is investing in this technology trusting in the future.

But something happened a couple of weeks ago, which broke many investor’s trusts.

The crypto crash started a bear market throughout the globe which is slowly recovering even now. 

From its high in November 2021, the bitcoin price has dropped by roughly two-thirds, and the total market capitalization of all cryptocurrencies has dropped from about $3 trillion to less than $1 trillion.

Even stablecoins, which are cryptocurrencies theoretically secured by deposits of dollars and other investment securities to keep their price steady, were vulnerable during the slump.

The cryptocurrency movement promises to democratize banking by weakening the dominance of giant banks and other existing banking institutions while increasing access to fundamental financial items & services for low-income consumers.

However, the fact is that many of these advantages have yet to be realized.

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What The Future Holds For Crypto

There will be a lot more regulation aimed at protecting investors, promoting accountability, and limiting risk-taking. Financial education is still a serious issue. While individual investors ought to be able to spend their hard-earned money however they see fit, they must at least do it with their eyes open.

Crypto advertisers, as well as their celebrity allies who generally put their personal financial stakes in the items they advocate, should be held back from making unrealistic claims of great returns with no risk.

Regulatory clarity might potentially help such innovative solutions by lowering the danger of economic uncertainty or the facilitation of illegal activities.

While government involvement in transactions and other parts of banking should be avoided, regulators do have a justifiable role to play in preventing misrepresentation of the safety of what is marketed as payment instruments but are viewed as capital assets by many users.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.