Bitcoin’s price dropped by 80 percent last year, while more institutions and individuals held the currency. Critics said it was long overdue. Others compared the panic to the 2008 financial crisis, saying that it was long overdue. But the two cryptocurrencies that grabbed the public’s attention were Ethereum and Dogecoin. Now, those two cryptocurrencies are trading for less than half of what they were worth last November.
UST was backed by an on-blockchain algorithm
Although the reason for the UST’s recent crash is still unclear, some analysts blame the collapse on investors’ waning confidence in the stablecoin’s underlying ecosystem. According to these analysts, algorithmic stablecoins are based on investor trust in the economic incentives of the underlying ecosystem. As trust fades, they will crash and suffer a death spiral.
Ether and Dogecoin captured the public’s attention
Bitcoin and Ether aren’t the only coins that caught the public’s interest after they crashed the market, but Dogecoin and Ethereum are capturing the public’s attention. Both coins were boosted by coordinated buying from retail investors on Reddit’s SatoshiStreetBets subreddit, and they continue to ride the wave of retail investor interest.
Ether and Dogecoin are trading for less than half of what they were worth last November
It’s worth considering investing in cryptocurrency if you want to earn a significant profit. Although Ethereum and Bitcoin are among the most popular and established digital currencies, there are also several new cryptocurrencies that are worth considering. If you’re interested in learning more about these coins, consider investing in Dogecoin. This cryptocurrency is a fun way to experiment with cryptocurrency and gain insight on its workings.
Regulation of cryptocurrencies
While regulators have had little say on the matter, many crypto companies have recognized the benefits of regulation. For one, it will help to ensure that the industry matures without being suspected of illegitimate uses. It will also ensure that businesses are not harmed by suspicions of illicit activity. Still, cryptocurrency has been a difficult year for investors. At the moment, the market is mainly focused on pending SEC decisions on Bitcoin ETF applications.
China’s move to ban cryptocurrency is a harbinger of things to come
China’s move to ban cryptocurrency is symptomatic of a wider crackdown on digital currency. While this clampdown is nothing new, the People’s Bank of China (PBOC) recently announced a ban on cryptocurrency exchanges in its country. The move is designed to discourage capital flight and to prevent economic instability, and comes amid fears that cryptocurrencies facilitate capital flight and bypass conventional restrictions. However, this ban also represents a trend of greater state intervention, which is characterized by such phrases as “common prosperity.”