Why Did the Bitcoin Price Fall After Consensus 2018?
Earlier this morning, the bitcoin price stood at a relatively respectable $8,200. But with evening approaching, the king of cryptocurrencies fell to a worrying $8,043. Psychologically, investors consider round numbers psychologically important. Should the crypto fall, we’re likely going to suffer nearer-term technical volatility.
But this weakness in the bitcoin price is strange, to say the least. Just a few days ago, Consensus 2018, or the “bitcoin conference,” closed. This was one of the most highly anticipated events in the financial investing world, even among mainstream sources. For instance, CNBC sent several reporters to cover the event.
The explosion in popularity towards Consensus 2018 undoubtedly confirms that more people than ever before are interested in cryptocurrencies. In other words, this latest bitcoin conference is the culmination of cryptocurrency-advocates push towards mainstream credibility.
More importantly, Consensus 2018 demonstrated the diversity of opinion within the sector. Not just a community of “fanboys,” cryptocurrencies have developed into a legitimate alternative to our fiat-based financial system. So why then is the bitcoin price falling? Even more worryingly, why can’t it find its floor?
I believe part of the reason for the weakness in bitcoin price is that Consensus 2018 did little to resolve the current problems impacting cryptocurrencies. Don’t get me wrong – the bitcoin conference did much to confirm the blockchain’s rise to power. But anybody that has logged onto Google should know that cryptocurrencies are popular.
What Consensus 2018 failed to answer is, what next?
Here’s the thing: no matter where the bitcoin price is, the entire crypto sector has yet to address the many scam projects that denigrate the “brand.” As mainstream journalists have reported, much of what occurred inside Consensus were pump-and-dump schemes. But because nobody can truly confirm whether or not they are indeed scams, everyone stays silent.
And no, determining whether a crypto project is a scam is not an easy task. With the blockchain, project managers and team-members can easily hide their tracks through extensive, convoluted transactions. Plus, many, if not most crypto projects are located in jurisdictions that are outside the U.S. or western powers – hello, Cayman Islands!
To gain ultimate credibility, the blockchain industry as a whole must prove that they have a viable solution to the pump-and-dump. And obviously, opening the doors to onerous regulations isn’t the answer.
Unfortunately, the wild-west nature of cryptocurrencies scares off mainstream investors, and that’s why the bitcoin price is under pressure.
very cool post. Thank you sir.
right think. you are right and good writing
upvoted and re-steemed...thx for the post