Bitcoin, Ethereum and Ripple are gaining in value again after a brutal week in which the cryptocurrency world otherwise begged for mercy. ON big market crash hit these currencies and the rest of the crypto market. With these big three recovering today, relieved investors are sure to interpret this as a sign that everything is fine and everything will be fine.
In the past 24 hours, Bitcoin climbed from nearly $ 9,000 to more than $ 12,000, Ethereum is up 6.8% and Ripple is back with a 30% increase. So come on in, the water is fine.
The crash was attributed to all possible causes, but the Markets got kneecaps by three governments expressing great skepticism (if not outright resentment) about cryptocurrencies at around the same time this week. France, Germany and China All have spoken out against cryptocurrency technology to varying degrees (surely, China always swings against it as if it were a constitutional requirement).
Though Bitcoin and Ethereum stocks can sloppily stumble upon like a young investment banker in an East Hampton bar, the decentralized technology that makes cryptocurrency work can effectively never go away. Just as big governments may be firmly in the “no crypto” camp, there are others who will see the appeal of introducing a formal, state-sponsored cryptocurrency.
The Republic of Belarus is the newest doer here; President Alexander Lukashenko has just signed a decree that not only legalizes cryptocurrency, ICOs and smart contracts, but also makes them tax-free until 2023. Neighboring Russia is also establishing itself as a pro-crypto, with favorable legislation in the works and already it is talked about a lot.
For the foreseeable future, the countries will certainly disagree about what role cryptocurrencies can or should play in the global economy. Everyone will make a decision on how best to deal with the new technology (if at all), and geopolitical decisions of this magnitude will surely affect the value of currencies that know no borders.
Cryptocurrency values change because the future is unknown. Both good and bad events take place in the real world that affect everything from the price of GE stock to the price of Bitcoin to our personal mood. Cryptocurrency investors are certainly in a slightly better mood as today’s market is something of a rainbow after a storm.