The living dead: You just can’t kill them cryptos!
Crypto coins across the board are slipping and sliding, pushed around by bans and suffering from trust issues.
Total market capitalization has dropped to $303 billion and the top-10 digital currencies listed on Coinmarketcap are in the red, according to the Coin Telegraph.
This is the bad news, but history, as we’ll see, is on the side of digital currency.
Though all good things come to an end, this crypto story is just beginning.
Down, yes, out, no
Bitcoin slipped 7% and dipped below the $8,000 level on Monday following a decision by Twitter to ban advertisements for initial coin offerings (ICOs) and token sales on its service.
According to CoinDesk ICO tracker, most people looking at the initial coin offering (ICO) trend see extraordinary sums of money coming in, like $8.84 billion as of February, “and no doubt that’s why U.S. regulators, such as the Securities and Exchange Commission (SEC) have raised so many questions about this new industry.”
Twitter’s move was out of concern the content is often related to deception and fraud, following on the footsteps of Facebook late January, when that announcement caused Bitcoin to dip 12%.
Google said it would do the same starting in June, announcing it will restrict advertising for “cryptocurrencies and related content”.
Bitcoin, the largest cryptocurrency, traded flat at $7,847.87, and rival coins Ripple, Ether and Litecoin also erased gains, according to Bloomberg.
“Bitcoin remains down 25% in March,” said Bloomberg.
It’s down more than 42% year to date after starting this year above $13,000, said CNBC.
Bitcoin’s highest peak was mid December 2017 when it briefly hit $20,000.
Regulatory winds of change
Regulatory news have had a tremendous impact on cryptos in 2018.
Every time financial watchdogs voiced their concern or offered their support, the price pendulum starts to swing.
“The U.S. Securities and Exchange Commission stepped up efforts to police the fundraising process through scores of subpoenas reported earlier in March,” said CNBC.
“It (Bitcoin) began falling below $10,000 three weeks ago, after the Securities and Exchange Commission said it will require digital asset exchanges to register with the agency.”
Last week, the US Internal Revenue Service (IRS) warned crypto investors to report their cryptocurrency earnings on their income tax returns, stating that virtual currency is considered property and is thus subject to federal taxes, according to the Coin Telegraph.
Then again, following the recent G-20 meeting when regulators said talks were positive around cryptos, prices recovered to the $9,000 range last week.
Other cryptocurrencies, or “alt coins,” have fallen double digits this year.
“Bitcoin cash is down roughly 29%, ethereum has fallen 45%, while litecoin is 40% lower since January 1,” according to Coinbase, adding “Ripple has dropped more than 38% since the start of the year.”
Alive and well
News BTC said that despite being told over and over again that Bitcoin is a “gonner”, it has persisted.
“Bitcoin has been killed off innumerable times in its short life, which began in January 2009,” said News BTC.
“As early as 2010 Tim Harford, ‘The Undercover Economist’, penned the cryptocurrency’s obituary in an article titled: ‘Why Bitcoin can’t be a currency.’ At that point, Bitcoin’s price was $0.23.”
The following year, after reaching a value at $7.80, Gizmodo Australia stated: “Bitcoin is dying.”
And in June 2013, at a price of $111, NYMag said: “Bitcoin sees the grim reaper.”
And only three months later, with Bitcoin’s price soaring to $607, a post said: “Cryptocurrencies are dead.”
In September 2017, with the price at $4,591, Seeking Alpha wrote about “the death of Bitcoin”.
News BTC continued saying that after peaking at $19,499 on December 18, 2017 and dropping to $11, 580 in January, The Week discussed “the end of Bitcoin”.
“In fact, Bitcoin has ‘died’ over 250 times – and counting – according to the global media,” said the crypto site.
But it’s still standing, and now more good news is coming.
Cboe Global Markets Inc. the first U.S. exchange to list Bitcoin futures last year, is asking in a letter to the US Securities and Exchange Commission (SEC) to consider approving crypto exchange-traded funds (ETFs).