Many critics of the cryptocurrency market claim that this past week’s drop in Bitcoin price and altcoins is proof that the cryptocurrency bubble is about to burst. Others see this as just a fluctuating market that, in its infancy stage, is susceptible to extreme highs and lows. Regardless of how you view the market plunge, focusing on recent positive cryptocurrency news shows the true future of cryptocurrency.
First understand that these dips are influenced by occurrences like the recent Bithumb hack of which $31 million of cryptocurrencies were stolen. This not only reduced the value of coins as they disappeared from the cryptocurrency exchange, but it also scared the hell out of people.
A cryptocurrency hack like this one causes investors and novices to quickly withdraw their currencies in hope to recover what is left of their coins, however; this is the wrong move. Instead of selling your bitcoin and altcoins, a better tactic would be to place them in an offline wallet. And instead of selling your cryptocurrencies, buy more coins as this is an opportunity to get altcoins dirt cheap. As the cryptocurrency market recovers, you will slowly see the exchange rate rise and, you will have saved yourself from losing money by bailing out too early.
If you still feel that the cryptocurrency bubble is about to burst and do not want to take a chance, here are 4 positive things happening in cryptocurrency that prove its longevity.
Tron Buys Bittorrent
The combination of Tron, crypto’s 9th ranking currency, and BitTorrent, once one of the internet’s largest file-sharing databases, has major potential to further decentralize the internet through peer-to-peer media swapping. Tron’s motivation behind the $140 million purchase of BitTorrent has its skeptics, from those who question the tactics used by founder Justin Sun to negotiate the deal to others who doubt the relevancy of BitTorrent in today’s world of Netflix and YouTube. However, with Tron’s market value at over $4 billion and BitTorent’s traffic of 45 million users a day, it has the potential to create a ground-breaking platform for mainstream use.
It is still unclear how the current technology of BitTorrent will be implemented used by Tron, but we do know that the cryptocurrency’s new blockchain code, Odyssey 2.0 will be a focus. Tron’s newly launched blockchain technology has its own network separate from its old Ethereum-based algorithm that allows users to create dApps using smart contracts, use a build-in online wallet, and form tokens for projects.
SEC: Not All Cryptocurrencies Are Not Securities
The U.S. Securities and Exchange Commission finally has come to a decision regarding the classification of tokens and coins distributed during ICOs (initial coin offerings) of cryptocurrency startups. Prior to their decision, many established coins like Bitcoin and Ethereum faced regulation setbacks while current ICOs were blocked by the strict procedures from the on start. It is now determined that cryptocurrencies like Bitcoin, which does not rely on the success of a company and is therefore a decentralized currency, are not securities. Other tokens that act as utilities with no value until the ICO succeeds is considered a security and must follow SEC regulations to ensure companies do not scam investors with worthless cryptos.
This is great news for the crypto market as it limits scam ICOs while allowing reputable cryptocurrencies to fundraise with ease. It also boosts the cryptocurrency market with new tokens and coins for investors to buy and keeps the competition and innovation high.
London Stock Exchanges Adds its First Mining Pool
Cryptocurrency mining goes mainstream with its first appearance on the London Stock Exchange. Argo, a mining-for-service company offers users a subscription-based mining option. Members can mine coins using their phones or computers without the expensive mining rig set up. Traditional mining takes some expertise, loads of electricity, and a lot of processing power. Using Argo’s web site, users will be able to mine (solve blockchain equations that process transactions and get rewarded with new cryptocurrencies) without difficulty and risk of losing money.
By being on the London Stock Exchange, cryptocurrency and mining become legitimized even more as people view it as a reliable business venture. People will also view the subscription mining platform as a simpler way to learn and mine coins.
The crypto world is expanding despite disappointments in the market. We are only in the infancy stage of digital currency and as coins partner with mainstream services, regulations become clear, and businesses gain legitimacy, we will begin to see the market thrive and level out. That is why it is important to watch how cryptocurrencies are being used not just how much coins are worth.