Who’s to blame for crypto volatility?

The end of 2017 has been the most volatile in many years for the crypto space. Cryptocurrency have been practicing so many swings that some speculators couldn’t even explain to themselves what was actually happening. Traders have certainly profited off Bitcoin high dips by buying it at such low prices. Some of the speculators claim that those are the lowest values Bitcoin will ever encounter.

Some experts in cryptocurrency seem to know exactly why these big fluctuations happen and why they don’t happen with real currency. Firstly, because they don’t have any intrinsic value, no governmental system helped in building the current price of the virtual coin. A cryptocurrency is not a company that performs services in exchange for money, so they don’t have a basis build on a real value. Also, they don’t pay taxes or dividends nor have employees as a usual company. A cryptocurrency is usually built by some developers with knowledge in binary world but they are far from being a sustained system.

As recently more countries are adopting regulations there is still a massive lack from this point of view. Most of the governments are undecided when it comes to cryptocurrency and many investors are backing down when hearing about regulative movements. Another important element is the popularization of the lack of security. Lately with all the scams and hacking issues, users are encouraged not to trust any exchange because eventually its security system will fail. That is only partially true, because many exchanges have recently enforced their security levels and it is 100% hack proof. Also, new investors are advised to trust in the olders exchanges that have had some experience in the crypto space and that have had some reviews also.

If you are ready to join the cryptocurrency world, you have to understand that this is a long term state and patient should be one of your favourite words. At virtual coins’ current situation, you can’t expect to get rich overnight nor to have high profits from the first days.