The Current State Of Crypto Markets

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As someone who's been involved in the cryptocurrency markets since Bitcoin was valued at $70 in 2013, I have since contributed as a community advocate, a technical recruiter, an investor and crypto trader. While tokens are considered digital currencies, they are also asynchronous, distributed platforms facilitating the disruption of many industries. Technology startups and more established enterprise companies that adopt and adapt to blockchain technology will be well positioned to compete and win the war for talent. But first, let's discuss the state of crypto markets, which have been dictated by volatility, geopolitics and, of course, technology.

For any given currency to have value, it needs to be backed up by the nation or federal government it belongs to. The same concept can be applied to cryptocurrencies with only one major difference: The value is given to it by the people themselves. As decentralized digital currencies like Bitcoin, Litecoin and Ethereum become mainstream, gaining more prominence in the public eye, traditional centralized finance and banking institutions are starting to push back. The battleground lies in the hearts and minds of consumers. The ammunition? News.

It is undeniable that cryptocurrencies, with Bitcoin leading the pack, have grown tremendously in the past quarter. Not only did Bitcoin triple in value in 2017, but it recently reached $20,000. There are now close to 1,400 cryptocurrencies that have a combined worth of around $300 billion. To top it off, on December 10, the Cboe Futures Exchange listed the first Bitcoin futures on its platform, which unsurprisingly caused the site to crash within the first few hours of it being listed. By some estimates, the cryptocurrency industry could be worth $5 trillion by 2022. But as the market is extremely volatile, that number is ever-changing as well is dependent on what source of news you listen to.

Dirty Digital Money?

The skepticism surrounding Bitcoin and other cryptocurrencies has always been present due to their use on the dark web and various nefarious online marketplaces like Silk Road. However, the controversy became even more prominent as we moved into Q4 2017. In September, China banned companies from raising money through ICOs, investigating 60 crypto marketplaces, while halting the creation of new projects that raise cash or other virtual currencies through cryptocurrencies. Regulators warned consumers about money laundering, criminal cyber activity and fraud.

Following China’s lead, Russian President Vladimir Putin spoke out against wide acceptance of cryptocurrencies due to the “serious risks” they carry. That being said, he proposed a regulatory system for ICOs and cryptocurrencies that will make it possible "to make relations in this sphere systemic, definitely protect interests of citizens, business and the government, and provide legal guarantees for work with innovative financial instruments.”

Jamie Dimon, CEO of JPMorgan, initially publicly dismissed Bitcoin as “a fraud” and “not a real thing.” Although such claims were not backed up by any substantial data, the accusations were predictable, as Dimon leads a company that is highly vested in traditional banking. However, Dimon now faces market abuse charges as Blockswater, an algorithmic liquidity provider, filed a complaint that he was deliberately spreading false information to artificially lower the price of Bitcoin so that Dimon and other large banks could come in and buy BTC on the dip.

In a counterargument to the above statements, Bitcoin supporters are urging regulators to not jump the gun and try to understand the space better in order to not stifle innovation.

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For any given currency to have value, it needs to be backed up by the nation or federal government it belongs to. The same concept can be applied to cryptocurrencies with only one major difference: The value is given to it by the people themselves. As decentralized digital currencies like Bitcoin, Litecoin and Ethereum become mainstream, gaining more prominence in the public eye, traditional centralized finance and banking institutions are starting to push back. The battleground lies in the hearts and minds of consumers. The ammunition? News.

It is undeniable that cryptocurrencies, with Bitcoin leading the pack, have grown tremendously in the past quarter. Not only did Bitcoin triple in value in 2017, but it recently reached $20,000. There are now close to 1,400 cryptocurrencies that have a combined worth of around $300 billion. To top it off, on December 10, the Cboe Futures Exchange listed the first Bitcoin futures on its platform, which unsurprisingly caused the site to crash within the first few hours of it being listed. By some estimates, the cryptocurrency industry could be worth $5 trillion by 2022. But as the market is extremely volatile, that number is ever-changing as well is dependent on what source of news you listen to.

Dirty Digital Money?

The skepticism surrounding Bitcoin and other cryptocurrencies has always been present due to their use on the dark web and various nefarious online marketplaces like Silk Road. However, the controversy became even more prominent as we moved into Q4 2017. In September, China banned companies from raising money through ICOs, investigating 60 crypto marketplaces, while halting the creation of new projects that raise cash or other virtual currencies through cryptocurrencies. Regulators warned consumers about money laundering, criminal cyber activity and fraud.

Jamie Dimon, CEO of JPMorgan, initially publicly dismissed Bitcoin as “a fraud” and “not a real thing.” Although such claims were not backed up by any substantial data, the accusations were predictable, as Dimon leads a company that is highly vested in traditional banking. However, Dimon now faces market abuse charges as Blockswater, an algorithmic liquidity provider, filed a complaint that he was deliberately spreading false information to artificially lower the price of Bitcoin so that Dimon and other large banks could come in and buy BTC on the dip.

In a counterargument to the above statements, Bitcoin supporters are urging regulators to not jump the gun and try to understand the space better in order to not stifle innovation.

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