#Coins similar to #Bitcoin have rapidly grown in popularity over the last year likely due to the fact that they can be traded without a governing body overseeing the transactions. As true as this may be, it also opens up the environment for fraud and price manipulation. Theres always another side to the coin.
Price manipulation is just as the phrase suggests, where deliberate efforts are put towards misleading the appearance of the market in order to control price (in this case). When we look for certain “tell-tale” signs on price manipulation, we tend to look at sharp rising and falling in the market.
There are many studies that suggest price manipulation and fraudulent activity within the #cryptocurrency market. And headlines are becoming mainstream.
Could this be a large enough impact to shake the publics trust in Cryptocurrency?
For any monetary system to function on a mass scale requires trust in the systems stability and value. One can argue that we can clearly see the fragility of the trust surrounding the decentralized network of blockchain and cryptocurrency in recent months. The headlines featuring price manipulation and fraud are definitely not helping the matter.
The #decentralized networks have been said to be “overcrowded” the more popular they become, where Bitcoin, as an example, limits the number of transactions it can handle per time period.
“Trust can evaporate at any time because of the fragility of the decentralized consensus through which transactions are recorded,” a Switzerland-based investing group said in it’s financial analysis.
Running the risk of losing value in the eyes of the public, the certainty of individual #payments are also being questioned, which at the end of the day has the power of putting a complete stop to cryptocurrency, if pushed far enough. Arguments are being made that cryptocurrency is a fad that people became involved with purely for speculative reasons. The American #monetary system is built on users, and it continues to thrive because of it, the same idea is being applied to cryptocurrency. Will there be enough users to sustain it for the long term? These are questions that yet have to be answered.
“Without users, it would simply be a worthless #token. That’s true whether it’s a piece of paper with a face on it, or a digital token,” Hyun Song Shin, head of BIS argues.
The costly price of miners are also being attacked as the dependency and survival of #crypto-transactions depend on them.
The public eye isn’t favouring the crypto world, at least, not right now.
Like most things in this market, we have yet to see what time has to offer. There may be many things against cryptocurrency in the present day, but we know that holding onto what we believe in is usually prosperous.