Governments are destroying Crypto’s for their own interest
This post is based around MY opinion.
This post might not agree with your opinions on the subject.
So all crypto’s are going down because governments are cracking down on cryptocurrencies (atm mainly Europe and China).
They say they fear the bubbles in the financial markets without underlying value that should support the price increases.
However, this is quite a fun thing.
They say they fear the bubbles yet they (together with banks) are making it so that this bubble exists and/or even pop.
They say “the financial markets without underlying value that should support the price increases”.
However, the Euro, Dollar, Yen etc. that they officially use as currency are literally the damn same thing.
It’s why they are called fiat currencies (not like the car brand).
Fiat currencies are literally with nothing by themselves.
It is because you can get stuff with it that they are worth something.
fiat is derived from the Latin word
let it be done.
Bitcoin in fact, is somewhat similar to fiat money.
You can get stuff with it, given you’ve found somebody that accepts them for their goods or services and they are worth nothing by themselves.
However, it is just the simple way of how the entire economy works.
It’s all supply and demand.
Why is a bread worth €1 and a pack of breakfast grains (like the stuff you put in milk or yogurt and then eat) is worth €2 or €3?
It’s because people are willing to but that bread for €1 for the bread, and €2 or €3 for the grains.
Prices will always stabilize themselves based on the supply and the demand.
Smartphones are worth more than a bread because people use them a lot, and think they are worth that €1299.
If they didn’t think that that smartphone was worth the €1299, nobody would buy it.
The supply would most likely go up in comparison to the demand and prices would (or at least, should) drop.
Now the demand can also out-number the supply, as is the current situation with GPU’s.
People want that sweet sweet GTX1070.
However, the amount of GPU’s produces where far lower than the amount people wanted to buy.
Therefore, the prices went up (the MSRP for a GTX1070 is ~€450, but now that can cost €500 to €600 with ease!).
Once Nvidia would produce more of them (or less people want the card because something faster or more efficient came out for example), the supply would grow, therefore prices should drop.
Why? because people aren’t willing to pay $1000 for a card that would take years to make it’s ROI (Return Of Investment).
That is literally just it.
If people don’t want to pay a lot for something, prices have to go down, or the product wont sell.
If the people want the product, and are willing to pay a higher price for it, the prices will go up.
Bitcoin went up so much because people heard about the hype.
People started to believe that it was worth something.
People where buying it for €9.000, €10.000 or even €11.000 (poor souls who have lost €2.250/BTC at the time of writing this post).
Prices went up to €16.000 and people stopped buying (because prices became too high).
Prices then came crashing down to earth again, and stabilized around €11.000.
Long ago, the currencies lived together in harmony.
Then, everything changed when the Governments and Banks attacked.
Only Satoshi Nakamoto, father of all the cryptocurrencies, could stop them, but when the world needed him most, he vanished.
Ok, enough of that, back to topic..
Governments are starting to crack down on cryptocurrencies, not *just* because of the fact that they are risky investments, but because they can’t regulate them.
They are somewhat difficult to track.
Not just when stolen, but also when used for other criminal activities like laundering.
This is what they actually fear.
They always fear of something they can’t regulate.
Something that could be used to start an up rise against them.
Trying to seize control and start regulating them anyways.
They try to scare people into thinking it is a bubble, while in fact everything is a bubble, just waiting to pop.
When they scare people enough, prices will go down (the supply will be higher than the demand, so prices will drop), this will scare more people, prices will go down more etc.
Once the price is low enough, a lot of people just “leave” it to be forgotten.
This is what governments and banks are trying to do.
Make it so nobody wants to touch cryptocurrencies again.
Nobody using cryptocurrencies == more people using their regulated currency == more control.
Is this what you want?
If not, then I have some advice (do with it whatever you want, just don’t blame me if it goes wrong) for you:
Even if the government is trying to scare you, don’t give in.
Just HODL your coins, or buy even more!
Show them that Cryptocurrencies will survive!