Will Cryptocurrencies Bounce Back?
These days, cryptocurrencies are becoming more commonplace than ever before. Not only have they been adopted by big names of the tech world like Microsoft and Expedia, but they are also increasingly used by visitors to sites like no limit casino as they indulge in their favorite slots, scratch cards and table games. Indeed, the enhanced security, anonymity and efficiency of cryptocurrencies lend themselves perfectly to online gambling.
However, the cryptocurrency market has taken its fair share of knocks in recent months. With influential figures decrying the environmental credentials of the market leader (Bitcoin) and national governments making historic judgements on its use within their borders, the prices of most cryptocurrencies have plummeted in recent times. Will they bounce back? Here’s a look at the latest developments to try and find out.
Tesla and China deal double hammer blow
The cryptocurrency market had been going from strength to strength until a seismic tweet from tech wizard and Tesla CEO Elon Musk in May. In his missive, Musk announced that Bitcoin would no longer be accepted by his company due to the enormous amounts of energy that the technology consumes in mining coins and approving transactions. The price of Bitcoin was slashed by a third in the immediate aftermath, with most other major cryptocurrencies also suffering from the shockwaves of the announcement.
More bad news for the market would follow just days later. Less than a week after Musk’s tweet, the Chinese government declared that it would ban the use of cryptocurrencies by its financial institutions, effectively outlawing them altogether in the country. Unsurprisingly, this prompted a further tumble in the value of Bitcoin and its counterparts, leaving them languishing at the lowest levels for many months.
On the road to recovery?
However, if one thing is certain in the world of cryptocurrency, it’s that uncertainty reigns supreme. While China’s rejection of crypto was certainly a blow to the sector, there was more positive news the following month when the government of El Salvador announced it would be adopting Bitcoin as legal tender in the country within 90 days.
The small Central American nation will now serve as something of a guinea pig for how cryptocurrency can operate in a real-world economy and could potentially serve as a blueprint for other emerging countries to follow.
Meanwhile, the fallout from Musk’s statement was also somewhat alleviated in June. After those involved in the mining of Bitcoin altered their strategies to consume less amounts of energy, Musk said that Tesla would begin accepting the currency once more.
In response, the market has already shown signs of recovery and prices have stabilized not only for Bitcoin, but for other cryptocurrencies, as well. As such, it seems as though crypto can bounce back in the short- to medium-term, as long as it continues to perform well on the global stage and receives the backing of influential thinkers.
While Bitcoin and other cryptocurrencies have suffered a turbulent few months, there are signs that the situation is calming and their market values are experiencing something of a resurgence.
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OhNoRipple via https://www.ohnocrypto.com/ @Gracie Perez, @KhareemSudlow