Cryptocurrencies are on the Rise Once More
After a little period of decline, it seems as though cryptocurrencies may be on their way back up. As investor sentiment grows stronger, so does their comfortability with investing in cryptocurrencies.
The total market cap of all cryptocurrencies rose up to a high of around $141.3 billion which is a staggering 45% increase from the low it hit on September 15th of $97.6 billion. This data is according to CoinMarketCap.
When the market cap of all cryptocurrencies dropped below the number of $100 billion, some investors thought this could be the bubble bursting. As traders responded to this by selling off their coins, the debate on regulation once again arose.
Although bitcoin has been around since 2009, there has not been an effective system at either governing or legislating its use. Government agencies have attempted to put some sort of law behind this wild west, but to no avail. An example of this happened in 2015 when the U.S. Commodity Futures Trading Commission stated that digital currencies were now being considered as commodities. A year later, a judge in the country stated that Bitcoin is in fact money and will be treated as such.
After all of these confusing attempts at legislation, nothing came of it and the industry is still unregulated for the most part.
The Chinese government has been the example of what a government can do when it cracks down on cryptocurrency and it has not been pretty. The country decided to ban all initial coin offerings or ICO’s and met with exchange representatives to have them shut down their local crypto exchanges. This was part of the reason that the price dropped down so sharply during the middle of September.
The hopes are high that some sort of regulation can help to grow the industry, rather than just attempt to control it.