Is this the inevitable crash for cryptocurrencies that the media outlets and the Bankers of the world get to say 'I told you so'. Kind of like when you were a kid and you ate too many chocolates just before dinner before being found out by your Mum because you couldn't finish your vegies.
I won't bore you with the details of what has caused this drop in price, but I'll summarise it in two words. Tether and Regulations. Steemit up if you wanna find the details
What was inevitable is that there was bound to be some cryptos that would come under the nose of governments. And of course, governments wanting to have some kind of regulation and control.
I'm kinda glad two bombshells hit twice in one day as I'd definitely prefer to have a couple of sore ribs at once than one kick in the guts today and then another one next week. No broken ribs, just more like that feeling when you've done too many situps in one day. No pain, no long term gain.
What's also interesting is that as I write, a lot of mainstream media has decided to run the latest piece in the news on cryptos, which could mean they are concerned of the boy who cried wolf syndrome. The general public gets desensitised pretty darn quickly when news that they don't really understand is repeated more than 2-3 times.
I believe the South Korea regulations are only going to be short term pain for us all and is probably something that every government needs to put into place. It's also going to give investers some kind of direction, and is certainly a way better option than the government just deciding to do something ott such as "try" and make cryptos illegal, which of couse will only force investers underground and heading in a direction that will reward the government with no taxes and no control.
Let's hope that Bitfinex are found to be legitimate and they really do have the 2.2 billion dollars sitting under their bed somewhere, particularly for the investers that were storing their "inbetween trades" money in there. I could've easily been one of those people, but fortunately I saw some red flags. So if Tether is found to be legitimate, it will bring renewed confidence in the market and I expect it to be the kickstarter that we've been waiting for all this month.
On the other hand, if Tether does go down the gurgler, I still expect the market to recover, but the kickstart will only come after some good new stories come out such as the full realisation of some major ico's, or some regulations from countries that will in turn give new investors the green light to step into what they saw as the murky waters of crypto.
But we know they aren't murky, just a few pebbles along the shore line that hurt our feet along the way to having the best swim ever.!