Every financial year is quite intriguing for blockchain briefly explained as they are subjected to numerous changes & regulations every now & then. The prices keep fluctuating quite radically, and millions of active participants hold their breath to witness the next big change in the crypto industry. What are the recent trends that cryptocurrency witnessed this year? What are the threats that it has to watch out for? Bitcoin Era will dive into this topic to extract some valuable information to help you get a good grip of the entire crypto scenario.
Here are some problems that cryptocurrencies have to watch out for:
#1 Regulation from the government is inescapable
Cryptocurrency is known to usually known to get under the skin of government quite easily as it poses a direct threat to the incumbent financial systems. We hear about the constantly changing strategies of the government as they go from being highly aggressive to completely indifferent in a short time. There have also been significant international developments in the crypto industry, and the volatility associated with it seems to constantly grow. Speculators & investors monitor such dynamic changes taking place in the digital finance ecosystem.
However, the government is also gaining significant grounds to regulate the crypto industry but does that mean that the freedom that millions of users look forward to will be gone? Whatever the end result may be, the regulatory actions from all the established communities in inescapable. Countries like South Korea have already banned the use of Bitcoin and all the subsequent trading that goes along with it.
#2 Inheritance will pose a problem?
The entire crypto industry operates on the decentralized format, which is more of a distributed public ledger. No one will be able to access their respective funds if they don’t have the keys to it, i.e., keys to digital wallets. Millions of users in this crypto industry are engrossed in mining the bitcoin & other predominant cryptocurrencies. Hence, no one can locate every cryptocurrency if they are not aware of each & every address associated with it. Now, this is a major problem if someone has to locate such currencies.
But, there is always a massive level of assurance that users can draw from it, which is impenetrable security. Fresh traders need to be taught about secured investments, and they should be able to determine the risky propositions as and when they occur.
#3 Prevalent security risk
Bitcoin is full of risks, but millions of users still flock towards it in hopes of making it big in their life through smart trading. But there is yet another bleak side to it which is heavily dominated by the hackers who are constantly prowling to claim their next victim. The prevalent operational glitches in the system make this entire industry susceptible to colossal threats that no one wants to look forward to.
Moreover, the recent surge in malware in the last decade has also elevated the problem to a whole new level. Governments & cyber cells worry about the increasing & unabated dominance of the crypto industry, which looms over their heads almost on a daily basis. Hackers can easily attack any crypto exchange to gain accessibility to millions of accounts & crypto wallets held by millions of users. It is undeniably a worthy concern.
#4 Market risk
There is no denying the fact that the prices of cryptocurrencies fluctuate on a daily basis which is why millions of traders stay hooked to their computer screens. The overall value of such cryptocurrencies is subject to changes, and traders have become accustomed to this fact. But it also comes with a major market risk that the existing & potential traders need to be aware of. With the number of investors growing on a massive scale, the market has become incredibly volatile & turbulent in the last couple of years.
The deluge of amateur & informal investors has caused the market to become highly sensitive, and it usually causes fierce swings as far as the overall value of the cryptocurrencies is concerned. However, digital currencies might lose their value if the pressure from all the directions does not die down in the near future.