The crypto ‘bubble’ happened between 2016 and 2018, this what when there was a vast amount of new ICO’s (Initial Coin Offerings) from all kinds of companies and hundreds of exchange sites popping up, most cryptocurrencies shot up and made some people very rich, alongside this there were quite a few scams that took advantage of peoples desire to made a quick buck which left them with nothing. By the end of 2018 the bubble burst to some degree, many of the cryptocurrencies failed and disappeared and we were left with a smaller bunch of more reliable, bigger offerings.
What we have found since then though is that the market is highly unstable, if you take some of the bigger players in the market like Bitcoin and Ethereum, you’ll no doubt have seen that recently the price of the currencies has absolutely plummeted, then at other times it shoots up. The reason for this is that cryptocurrency in itself is not actually tied to anything intrinsic, there is no GDP from a country, no large company performance, no housing market that actually influences this price, it is just purely based upon interest and whether people are buying or selling the cryptocurrency at that time.
Can we ever trust a currency that nobody controls?
This is perhaps the biggest reason why cryptocurrency will never become mainstream and take over normal, traditional currencies. Humans by nature like somebody to be in charge, it is the same reason why a large percentage of people probably wouldn’t fly on a plane if there was no pilot and just a computer flying it. The chances are a computer could fly it just as well, if not better than a human and most of the time the computer is flying a plane anyway but people feel better knowing a human is there. Cryptocurrency is similar in that as we mentioned earlier in the article, it isn’t actually tied to anything real, it is purely based on number flying around online and people will have a deep mistrust of that.
That said, more and more companies are starting to accept crypto as a form of currency and some countries have even made it an official currency, accepted everywhere so either we’ll fast forward 20 years and see it is the new norm, or those countries will have made a massive mistake and backtracked on it.
Security Issues & Scams
Traditional currency has always had its issues with identity theft and scams, so it certainly isn’t immune to it, but there is an entire system in place to refund peoples money should they be a victim of fraud. One of the main issues with cryptocurrency is that you, and you alone, have access to your wallet that contains all of your money and should anyone else get the key to that, they can just take all of your money and there’s nothing you can do. People have even lost USB drives and passwords and simply had to give up on millions of pounds, it just doesn’t have the level of security to be used on a wide scale.
There have been numerous instances of kidnappings to get passwords off people and gain access to their wallet and beyond that many instances of scams from crypto exchange sites and ICO’s. If you think you might have been the victim of a scam it is important to reach out to investment fraud lawyers who may be able to get some, or all of your money back for you.