The current bearish condition in the crypto space has left a lot of suspense in the minds of all crypto users, investors, and enthusiasts. Millions of dollars have gone down the drain in a little space of time. One is left wondering if the digital currency space would rise again from this huge fall.
As we view and analyze the fall in the prices of cryptocurrency, it is important to also look critically at the environmental forces hitting down the market.
All eyes seem to be focused on the crypto markets, the press scratch everywhere to source news about the digital currency, giving a very cynical impression. All the attention which was formerly given to politics and entertainment are now diverted to the crypto space. So many financial experts have made negative statements about bitcoin and other cryptos.
Jamie Dimon, JP Morgan boss, once said that bitcoin is a fraud and it is not going to work, going as far as setting rules against bitcoin investment in his company.
Cryptocurrency is a product of an emerging technology, blockchain, there is a skeptical approach in the use of an investment in the crypto space. Major Institutions in both private and public sectors find it very difficult to adapt to the use of cryptocurrencies. Most of them have adopted a kind of sit on the fence approach watching what would become of the cryptos.
There is no firm hold on the control of the cryptocurrency by the financial regulators like the International Monetary Funds, IMF and the Central Banks. The security of financial wealth being reserved in digital currency is still in question.
Ripple Inc. seems to have made the analysis of all these challenges and decided to profer solutions, mostly in the area of institutional adoption as stated by Ripple CEO, Brad Garlinghouse in his recent interview with Bloomberg. This involves government, financial institutions, regulatory authorities and big multinational companies accepting cryptocurrency.
Ripple is laying a good example signing on a lot of banks and other financial institutions to its network. It focuses on developing decentralized financial tools to ease cross-border payment processing. Stability in the crypto space is likely to occur if the government would heed Ripple’s call for institutional adoption.