What Is Happening To Crypto Now? - Part 1

The Position Of Cryptocurrency In The Market

The crypto markets were observed to be crashing down a few days ago and they have been crashing harder even now. For months, bitcoin hasn’t fallen past $6,000 and now it has dumped to $4,413.99 along with nearly everything else falling in unison. Ethereum which was seen to be flying high at $700, is currently at $140. Currently sporting a series of charts that look like Aspen black diamond ski runs, is Coinbase the bastion of crypto stability. 

Hereby what is then happening? With several theories being laid out here the sentiment is ultimately bleak in the crypto world as the bull runs are being seen as a thing of the distant past. It is here that regulators clamp down pie-in-the-sky ideas thereafter crashing with shady dealers taking their shady dealings elsewhere as the things made cryptocurrencies so much fun along with being dangerous and slowly draining away. At least by making things less interesting, what is that left for anyone’s guess? 

What About The Bag Holder Theory?

Supposed to be a good month for crypto is November as garbage sites like those of FortuneJack were crowing about bitcoin stability as the old crypto hands were optimistic and pessimistic at the same time. Founder of ShapeShift, Erik Voorhees felt that the inevitable collapse of the global financial system by now is good for folks as they come at least as a few BTC in the wallets. While it was found that others like Binance CEO Changpeng Zhao were expecting a bull run later and said the company was particularly profitable. Crypto hype ultimately moves the market far more than it has any right to and which is a huge problem.

In this case who do you believe, these guys or your very own lying eyes? Being a complex question let’s first understand the crypto to be a technical product weaponised by cash, as companies like Binance and Coinbase are working mightily to maintain revenue streams and especially considering the Coinbase’s current level of that outside investment. Hence it is here that start-ups can affect their value over time and talk about that shortly, crypto hype hasn’t been matching the reality of late which is a major concern to the skittish investor. 

As Travin Keith founder of Altrean says, he thinks that the downturn is particularly due to things not going up as much as people had wanted as everyone was expecting November to be a bull month. As things indicated that it wasn’t likely going that way, those who were on borrowed time like those needing some buffer comes along with those in the crypto business needing some money needed to sell.  

Here Is Tether Untethered

Long been the prime suspect in the Bitcoin run up and crash, Tether created by an exchange called Bitfinex has the currency pegged to the dollar which is according to the exchange itself where each tether about $2.7 billion worth comes connected to the actual dollar in someone’s bank's account. It is yet to be proven whether or not this is true as the smart money is on “not true”. Jon Evans thereby explain that 

What comes to be those whiffs of misconduct to which he previously referred? He means how much time do you have? There is one passionate critic typically known as Bitfinexed who has been writing about this for quite some time now as is therefore in a pretty deep rabbit hole. Having accused Bitfinex/Tether of manipulating the price of Bitcoin upwards are the University of Texas researchers where the two entities have allegedly been subpoenaed by US regulators and thereby in possibly related news the US Justice Department has opened a criminal investigation into cryptocurrency price manipulation as critics say it is ongoing. 

Concluding The Discussion Here To Be Continued

Some comparisons are being drawn with the Liberty Reserve which was the digital currency serve to shut down for money laundering five years ago:

So then what is going on? This is a good question, as on the one hand people along with companies are at least morally consistent with the industry as a whole. Being privacy maximalists and/or hate and fear the government is a wildly disproportionate number of crypto people. 

Whereas on the other hand is one reason for the privacy maximalism because they fear rubber-hose decryption of the keys while another especially when anti-government sentiment is involved being feared the taxman or the regulator. For the third one, it might be that the fear of what the invisible hand would do to cryptocurrency prices if it had full leeway and surely it doesn’t look good as at least one of your claims that the unaudited reserves are being subject to frequent professional audits hard to interpret as anything other than a baldfaced lie.