Why Cryptocurrencies Face Challenges in the Market

[Lily]

Cryptocurrencies operate in a market-driven system, but a closer look reveals that the market isn't exactly favorable to them. Firstly, governments express reservations about cryptocurrencies, even in countries where they are legal, leading to the implementation of stringent measures. Additionally, the substantial energy consumption associated with crypto mining raises concerns among a segment of the population.

The absence of a central authority introduces a financial risk, as some crypto projects may abscond with investors' funds. While Bitcoin is a robust form of currency due to its decentralization, its value can still fluctuate significantly. Consider the stability of the US Dollar—although it doesn't become worthless, its value can change over time. Similar principles apply to Bitcoin.

The anonymity inherent in cryptocurrencies poses a significant threat to the traditional financial system, including central and private banks. This anonymity facilitates activities such as money laundering, purchasing illegal items, and funding criminal endeavors through untraceable transactions with cryptocurrency

[Heatman]

Adding how the government of most countries are fighting against cryptocurrency is something that needs to be identified very well because if they had come out fully to support cryptocurrency, big companies would start using it for all their business transaction. This will boost the popularity of cryptocurrency in the market.

[Henrywrites]

Adding how the government of most countries are fighting against cryptocurrency is something that needs to be identified very well because if they had come out fully to support cryptocurrency, big companies would start using it for all their business transaction. This will boost the popularity of cryptocurrency in the market.

The thing is that most of these big companies manipulate the market, and it has not been an easy ride for retail traders in the market. You can see this from what has been happening in the market so far.