Why the huge Decline was needed/compulsory for the success of Cryptocurrency?

Dark clouds are flying over the cryptocurrency universe for most of this year. Having risen to record highs in the last few weeks of last year, it was indeed hoped that cryptocurrencies would maintain their market worth and even climb higher. Many analysts went on TV shows and predicted that Bitcoin’s price would approach high by the mid of this year, so the market supported those forecast.

However, the market has been anything but favorable and optimistic for cryptos since this year began. Bitcoin has been fighting to stay above $7,000 for the last three months, and the other cryptocurrencies have not done properly either. The worst player has probably been Ripple’s XRP which has gone down more than 75% since beating its record up in January. Ethereum has stroke its poor price since November, with NEO, IOTA, Litecoin, Cardano,  Stellar, EOS and most of the other significant cryptos bleeding considerably. However, the reestablishment of cryptocurrency market has already begun, and things are advancing, with Bitcoin approaching $9,000 at present.

The recent decline in the crypto market was brought about by some reasons that include the substantial questions which the market evaded for discussion previous year.

The first of these effects are regulative, with governments across the world immobilizing down on any cryptocurrency whose practices they consider suspicious. The immobilizing was chiefly directed at crypto exchanges, and Japan is leading this clampdown on exchanges. One of the most crypto-friendly nations, it has insisted on strict regulatory policy in regards to transactions, specifically since the hacking of Coincheck. This has headed to the shutdown of exchanges in Japan including Mr. Exchange and Tokyo Gateway. After breaking to get the required license from the FSA, Binance is also advancing to Malta.

The banning of cryptocurrency ads from the leading digital ad providers this year is another significant element. These bans began with Facebook in January, which declared that it would ban crypto ads to save its users from fraudulent ICOs that were on a fearful rise. The effect on the markets was instant, and most cryptos went down in value but later regained. Google was the next, and the reasons were same.MailChimp and Twitter are some of the other digital platforms that have also banned on crypto ads. While crypto ads being banned should not have had such a massive effect on the markets, the reality is that it did. These bans made people ask relevant questions and also made others attentive about investing in crypto.

The big decline has given many investors anxiety, especially those who invested for entirely risky reasons. However, this was an urgent need for the lasting success of cryptocurrencies. The cryptocurrency market has become global with frauds, scams and corrupt people who are out to victim on the insensitivity of others.

ICOs raised over $4 billion, an imposing figure that ICOs were a largely unknown concept the year before in the year 2017. Sadly, ICOs also became a favorite channel for cheaters. Cryptocurrency projects that promised assured profits were on the rise, and many undoubtful investors put their hard-earned money into these projects only for them to be closed down a few months later. With the ICO sector being largely unregulated, there was no way for the investors to regain their investment, and millions of dollars were missed. Those platforms included Confido, AriseBank, Bitconnect MyBTGWallet, ToTheMoon, Bitcard, and many more. This brought a lousy reputation to crypto, even though many were solving specific problems and doing so in a genuine way.

In the ICO sector Regulation will go a long way in controlling illegal projects. Many millions of dollars have been strayed to hackers, and if the exchanges are not forced to take more strict security measures, it will continue. Japan is guiding the world in enforcing security agreement, which will only inspire more confidence in the sector in the long run.

The bans by major digital platforms of all crypto-related ads were taken as an action of war by many crypto lovers. This may be so, but there is no contradict bad reputation that cryptocurrencies were getting from illegal ads that used these platforms to mark beginner investors who had no way of telling the good from the bad. Most of the platforms, including Google, Facebook have promised to continue working on improving their systems to be able to distinguish the genuine projects from the illegal ones. These ads could be brought back in a regulated manner in the future.

The cryptocurrency market would not be very down for now. It has become more streamlined, better, and is gradually filtering out the harmful factors. It only carries better from here.