December started with a new peak in most of the top 10 cryptocurrencies; however, January is starting with low numbers that people haven’t seen since November. Bitcoin is below $10,000, Ethereum is below $1,000 and Litecoin is below $200. Not only are the major players being affected, but altcoins are also seeing a hit. Many believe that this is the “crash” everyone has been expecting, but this isn’t. This decrease is due to the nature of fear many users and investors are having with government regulation. Especially in South Korea. South Korea has a major role in cryptocurrencies because of the amount of trading that is done in that region. With so much control over the market, one negative move that restricts cryptocurrencies caused a large effect across countries because of the global nature of the technology.
What South Korea is unsure of this new technology and the cryptocurrency uproar. Many young people are under a lot of pressure due to job supply and demand, so people are looking to make money on the side, people are also investing a lot of money and savings into the currencies and the government doesn’t want its people to get burned in the market because of a bubble. They want to regulate cryptocurrencies and decide how they want to proceed. Cryptocurrencies are being a larger and larger part of the future and South Korea is trying to figure out how to restrict them because of their lack of centralization; however, the same reason that South Korea wants to ban it is what makes it very hard to control. Since there is no one in control besides the blockchain, no one has control over it. This is leading to South Korea making very tight restrictions to avoid potential problems with scams, ICOs, bubble, etc. And therefore the buying of cryptocurrencies in South Korea has halted. And with any good free market supply and demand, the less people buying, the lower the price is going to be. In the end, the market is taking a hit.
This decrease trend is soon going to have a turn around and head in the other direction. South Korea is going to figure out the best ways to restrict cryptocurrencies and the market is going to rebound. If this doesn’t happen, China and the United States will take the market in their own hands and the market will soon be controlled by them, leading to a more stable market. These are just very uncertain times, especially with this new technology. It was a rough few days but things look like they are heading back up.