EURUSD Article by Allie Longford on 15:07 Octuber 24, 2019 EST
The most senior of all crypto currencies continues to sink this week and trades below $7,500. It is now close to 50% below the lower high it made earlier this summer.
The main problem for cryptos appears to be that, despise all the hype it got from the media a few years ago, its adoption hasn't really taken off widely enough before regulation catches up. We have seen the birth in this decade of disruptors such as AirBnb or Uber that have taken part of the business from hotels and taxis respectively before policy makers started to set their eyes on them. By the time policy has started to be written these firms have managed to grab a substantial market
share and excert their influence with a significant part of the public opinion in their favour as well as being able to utilise lobbies to push for their interest.
It is a completely different game to disrupt the hospitality sector than soverign currencies and, although it is commonly said that fiat currencies are backed by nothing, this can't be further from the truth as states and their armies have their backs.
Facebook is currently working on its own crypto currency called "Libra". This, on its own, should be a huge reason for concern to Bitcoinbelievers as Bitcoin may go in the history of crypto in the same fashion Netscape did in the world of web browsers. But the worries don't stop there. Prominent companies such as Paypal, Visa and Mastercard that partnered the social network
in the project have recently withdrawn as even though they see the potential of it they don't appear to be willing to step on the toes of states around the world by potentially debasing their own currencies.
There are other problems with bitcoins such as the system itself being not cost effective to scale up to global adoption but regulation increasingly appears its Achilles' heel.