Cryptocurrencies are under attack but it takes a discerning mind to identify the subtle, covert, and overt attacks against the industry. Cryptocurrencies are an interesting application of blockchain technology. They have shown an impressive ability to facilitate an unprecedented paradigm shift that could transverse the financial, political, and socio-economic landscapes globally. Simply put, blockchain technology and cryptocurrencies have the potential to usher in a new world order.
Cryptocurrencies such as Bitcoin, Ripple, Litecoin, and Monero have shown a potential to displace fiat currencies as a means of exchange, store of value, and as legal tenders. Blockchain such as Ethereum and NEO have shown impressive potential to power a smart-contract economy, eliminate middlemen, and to deliver an unprecedented level of trust in business.
The haters have arrived
Traditional financial institutions, governments, and critics have never hidden their displeasure with cryptocurrency and its potential to change the world. Last year, the SEC ruled that Bitcoin is not a currency, James Dimon of JPMorgan called Bitcoin an outright fraud, and government agencies all over the world started clamoring for increased regulation on the operation of cryptocurrencies.
As 2018 gets underway, the concerted efforts of critics and skeptics have had a combined effort of exerting downward pressure on the price and value of cryptocurrencies worldwide.
In the chart above, Bitcoin (blue) is down by a heart-breaking 40.8% in the year-to-date period. In contrast, Wall Street equities are up – the S&P 500 is up 1.47%, NASDAQ Composite is up 6.39%, and small caps in the Russell 2000 are up 2.28%. (more…)