Bitcoin in 2018 – A Cryptocurrency News Wrap Up
Cryptocurrency news in 2018, went from bleak, to what was almost an all-out FUD war. Bitcoin in 2018, didn’t perform nearly as well as many.
Cryptocurrency news in 2018, went from bleak, to what was almost an all-out FUD war. Bitcoin in 2018, didn’t perform nearly as well as many top commentators hoped. Here we’ll, therefore, look at some of the possible reasons why, while briefly recapping some of 2018’s top cryptocurrency news events.
The Harsh Reality of Bitcoin in 2018
Cryptocurrency news in 2018, hasn’t just detailed calamitous price pull-backs. There have been positive developments in the cryptosphere. However, before recapping the positives, it’s important to understand what hurdles might still lay ahead.
Many Banks in 2018 Effectively Banned Cryptocurrency Purchases
In February 2018, trending cryptocurrency news concerned a blanket ban by many credit card companies on cryptocurrency purchases. All justified bans by citing a need to protect consumer investors from cryptocurrency price volatility.
After restrictions on credit card purchases, came restrictions by some banks on debit card purchases. Moreover, why February’s cryptocurrency news still holds relevance is simple.
- Cryptocurrency market growth between 2010 and 2018, was predominantly driven by consumer investment
- New consumer investors now find it more difficult to enter the market
- Reduced consumer investment has resulted in slower growth and slower coin price recoveries over 2018
As of December 2018, more bank restrictions on cryptocurrency purchases have begun to come into effect. Specifically, in European member states like Malta. For this reason, cryptocurrency market growth may be slow to start in 2019 also.
Loss of Trust in Traditional ICOs
In the first quarter of 2018, more investment flooded into the ICO market than during the entirety of 2018. However, by August, 55% of new ICOs were failing to meet fundraising targets. It has also been discovered that 81% of ICOs launched in 2017 were scams. This has led to stricter regulation in the U.S. and reduced confidence among many investors.
What Lack of Trust & Increased Regulation Means for ICOs in 2019
At present, it is still possible to profit by investing in the right ICO. However, the ICO market is now wholly different to the market investors knew in 2017. As a result, Ethereum has realized heavy losses, and the majority of new ICOs are now being launched outside of the U.S.
Is Increased Regulation a Good Thing?
Some have called out ICO regulation in the United States as stifling innovation. However, ICOs are not illegal. Startups raising funds now simply face harsher penalties concerning fraud and tax evasion. Investors in 2019, may, therefore, want to think carefully before investing in ICOs launched in areas where ICOs are not as well regulated.
Bad Actors Continue to Attempt to Manipulate the Cryptocurrency Market
In September 2017, the cryptocurrency market was rocked by the Bitcoin vs. Bitcoin Cash Hash War.
Despite being given an initial blessing by Bitcoin Core, Bitcoin Cash architects Roger Ver and Jihan Wu, caused chaos for Bitcoin. Namely, by manipulating mining power and aggressively marketing Bitcoin Cash as the ‘real’ Bitcoin.
Thankfully, Bitcoin in 2018 has maintained its market dominance. Moreover, prices were relatively stable between May and October. Then Bitcoin SV happened. Bitcoin SV being a new fork of Bitcoin Core led by an Australian computer scientist claiming to be Satoshi Nakamoto.
All About Branding
Bitcoin SV was announced as a possible upgrade to Bitcoin Cash which miners could choose to adopt or not. However, after release, Bitcoin SV creator Dr. Craig S Wright, announced plans to take hashing power away from Bitcoin Cash; and if necessary, take Bitcoin down to as little as $1,000 in value.
The ensuing battle between Bitcoin Cash and Bitcoin SV has caused widespread confusion among investors. This is due to both coins co-opting the Bitcoin brand. Moreover, by proving how easy it is to co-opt Bitcoin’s identity, it is likely that more attempts to cash in on Bitcoin’s namesake will manifest in 2019.
Bitcoin in 2018 & the ETF That Never Happened
Throughout 2018, cryptocurrency news wires buzzed with promises of millions of dollars of institutional investment waiting to enter the market. Sadly, 2018 will draw to a close without a single Bitcoin ETF or similar mainstream investment vehicle. Some also argue that the recent Bitcoin Cash vs. Bitcoin SV Hash War will make a Bitcoin ETFs less likely in 2019.
Positive Cryptocurrency News from 2018
Bitcoin in 2018 may have suffered 80% losses. However, there are signs that the so-called crypto winter of 2018, may be drawing to a close.
Cryptocurrency adoption levels have increased throughout 2018. Merchants accepting cryptocurrency payments have also increased in number. Meanwhile, blockchain technology has finally begun to be embraced by mainstream businesses. For these reasons, 2019 may well witness the recovery of several top market cap coins.
The Road to Recovery Won’t be Easy
One thing to keep in mind concerning 2019, is that the road to a broader cryptocurrency market recovery won’t be easy. Even in a best-case scenario, many people who entered the market late in 2017, will likely cash out immediately if Bitcoin ever re-tests $20,000. Now is, therefore, a time for investors to exercise more caution when investing, rather than jump in feet first at the first signs of a market recovery.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 18, 2022