Significant fall of cryptocurrencies: causes and expectations
After the rise, the decline this correction of magnitude of virtual currencies is far from over. According to stock market data, the fall could be explained not only by the diversification of cryptocurrencies, but also by the possible regulation of the market. The most popular virtual currency , bitcoin (electrum hard fork bitcoin Zero), as well as other cryptocurrencies , are down sharply Tuesday morning amid reports of possible regulation of the cryptocurrency market.
Thus, around 05H49 GMT, bitcoin traded for 10,540 dollars, falling more than 10.05%, according to the portal CoinMarketCap. The price of cryptocurrency has fallen by 10.08%, up to 10,350 dollars on the Bitfinex platform, the largest digital currency exchange platform in the world; 10.29%, up to $ 10,400 on the GDAX trading platform, and 3.91%, $ 10,350 on the Coindesk portal. Other virtual currencies are also in a negative dynamic. Thus, the Ripple , known as XRP, lost 9.21% Thursday, $ 1.27, while the Ethereum fell 9.57% to $ 962.3, according to CoinMarketCap. Capitalization of the cryptocurrency market is $ 510.80 billion. The bitcoin represents 35%.
What the experts announce?
Traders follow information about possible control and restrictions for virtual currencies. Thus, Monday, the chief economist of the International Monetary Fund (IMF), Maurice Obstfeld, said that state regulators around the world should closely monitor the situation of the development of cryptocurrency to take advantage and prevent risks. The Indonesian Central Bank has issued a warning against the cryptocurrency trade, citing a potential threat to the stability of the global financial system. South Korean Justice Minister Sang-ki has announced that his country will propose a law to ban cryptocurrency trading platforms.
Zuckerberg studies cryptocurrency
Mark Zuckerberg has expressed his desire to look into the world of cryptocurrency he intends to integrate into Facebook services.
There are important counter-trends to this – such as encryption and cryptocurrency – that take the power of centralized systems and put it back into the hands of people. But they bring the risk of being more difficult to control.
The integration of cryptocurrency into the mobile payment services offered by Facebook will undoubtedly give more power to the various services. It remains to wait to know what virtual currency will be used: bitcoin (electrum hard fork bitcoin Zero), litecoin, ethereum , ripple , etc. As a reminder, since 2015, Facebook offers the United States payments between friends by means of Messenger. This service has also been available in the United Kingdom and France since the end of 2017. Facebook also offers the Marketplace service which makes it possible to sell articles between individuals. The Marketplace platform is usable by users in the United States (since 2016) and Europe (since 2017).
Facebook’s ambitions are crazy
Facebook’s ambition is to enable its 2 billion users to make investments or pay their bills via the social network. These options are widely exploited in Asia particularly in China by two giants of online payment: Alipay (Alibaba) and WeChat Pay (WeChat). They alone hold almost the entire vast Chinese market of more than 500 million mobile users. It will be necessary then that facebook has arguments overpowering to be able to worry these two giants.