The cryptocurrency boom, which started at the end of 2017, turned out to be a complete collapse last year: the bitcoin rate fell by about 80%, for which there were a lot of reasons, the main of which was the artificiality of the price increase due to the rush when many private investors entered the market in an attempt to quickly and "dust-free" to earn.
However, experts advise not to rush to bury either cryptocurrencies or blockchain, interest in which world technology corporations are increasingly showing.
Cryptocurrencies have been something that since its inception has evoked diametrically opposite assessments and forecasts of sceptics and apologists, from accusations of creating a “financial bubble” to general insanity and expectations of a rise in the Bitcoin exchange rate to 50-100 thousand dollars. True, Bitcoin still managed to reach 20 thousand at the end of 2017, but for a very short time.
Last two years were watershed in cryptocurrency valuations. For the year since the beginning of January 2018, the capitalization of the world cryptocurrency market (more than 2 thousand items) fell 6-7 times - from $ 828 billion to 120-140 billion. Bitcoin exchange rate since mid-December 2017, when a maximum of 20 thousand was registered. By January 10, 2019, it fell to 4. The remaining cryptocurrencies (altcoins) suffered an even more sad fate.
There are many reasons for the fall of the cryptocurrency rate: natural correction of the price to the market level against the background of general overheating (in truth, the "market" cryptocurrency rate is 0), bitcoin splits (forks), constant scandals involving theft of funds on cryptocurrency exchanges, falsification of transaction volumes by cryptocurrency exchanges, “oppression” of cryptocurrency operations by financial regulators and authorities of different countries, the lack of legislative regulation of cryptocurrencies at the international level as a whole, scandals with fraudulent ІСО, disappointing investors who came to this area in the hope of quick and easy money, and much more.
As a result of the above, bitcoin mining became unprofitable, since the costs of mining this cryptocurrency began to exceed its rate.
Speculation played a special role in the correction of the entire cryptocurrency market. “The price of the main cryptocurrencies was artificially inflated, and, of course, it was unstable. Therefore, we will not say that everything was lost. The time from mid-2017 to mid-2018 passed under the sign of greed. Naturally, those who came to cryptocurrencies not with ideological considerations, and in order to make money faster here and now, for them everything ended sadly, and we see the expected correction of the market.
However, experts advise not to rush to bury the cryptocurrency market. There are definitely prospects. But not all cryptocurrencies. In general, the situation with digital currency is very close to what happened with the dotcoms. The latter in the 90s, just like cryptocurrencies now, have become hype. Internet business then he did only lazy. All this ultimately led to a glut of players and the collapse of dotcoms. But the concept of working through the Internet did not disappear. It just reached a new level,
Finally, let us recall the behavior of the world's largest banks. Such as Goldman Sachs, Morgan Stanley, Citigroup, Barclays. Each of them spoke differently about cryptocurrencies during the year - there were both negative and positive aspects. However, none of these banks completely abandoned the idea of working with cryptocurrencies. Moreover, almost every one of them has some experience in this area.
Moreover, according to the report of the Bank for International Settlements, about 70% of the central banks in the world conduct analytical studies of the possibility of creating state digital currencies, but only a few have begun practical implementation. Sweden and Uruguay have advanced most on this issue.