This year has seen the cryptocurrency market cross 800 percent growth, but recently, there has been a slowing down and leveling off, even a dip. Is this the market stalling after astronomical growth, or could it be a sign of maturation?
Governments, financial institutions, as well as new niches of the population, are no longer observing cryptocurrencies - they are taking part. However, the flipside is that there’s been a lot of interference in places like China, with their ICO ban, as well as the USA and its SEC, and FINRA and the Russian central bank.
Some see bubbles, others see growth
There is no denying the astronomical growth of the crypto market, but for some these are scary signs, and signs that an unprecedented bubble is forming.
However, interesting developments are indicative that the landscape might in fact be evolving into a more stabilized market.
Fears of regulation and China jumping in with its hardline approach to ICOs, look to be actively stalling the market, but these can be viewed as signs of maturity.
Reasons for maturity
Regulations for a decentralised platform like Bitcoin et al seem oxymoronic, however, some regulation can be a good thing, as it can stabilize the chaotic landscape that is digital currencies.
In tandem, startups and projects are emerging to help the market adapt to the new rules, letting them fit into the current markets while still allowing them to be disruptive and revolutionary.
It has already been stated, but the fact that traditional money, and investors, as well as governments, are getting involved with digital currencies proves that there is indeed a new and steady step being made.
Reasons to see the market staling
Of course, some of the signs that are being interpreted as a maturing market can also be viewed as a stalling market.
The astronomical growth has literally scared some investors, as they cannot see how it can continue to expand without a dreaded pop. This has seen more cautious investors slow their fury and ease off a bit, leading to a stalling of sorts.
The ICO ban in China is also a big move as governments are still looking for precedents as to how to handle this new technology. Banning ICOs means that the new market of innovators with Blockchain technology and digital currencies are cut out, and again, the market stalls.
Finally, it is not just China and its bold ban. Other countries, like the USA and its SEC have shown they are skeptical of ICOs, and as such, Russian and the FINRA have followed suit.