In the contemporary economic trend, the cryptocurrency market has gained massive popularity all over the world. The arrival of more and more people into the market is all because the rising of major cryptocurrencies like Ethereum and the dominant one, Bitcoin. People are much curious to know about top cryptocurrency wallet apps, where they can trade on for cryptocurrencies. It has been noticed that some crypto exchanges are unable to carry the created account feature available all 24 hrs. More than half a trillion dollars is supposed to be the total market capitalization of the whole market. Despite attaining worldwide fame, there are some big problems faced by the cryptocurrency market. If you want to know these significant issues, then read the blog until the end.
The factors which we are going to highlight creates an adverse effect on the market. Now there can be many functional hurdles that can be the reason behind it. Some of these problems include the vulnerable state of the market, unfamiliar with the crypto spacing and other economic cryptocurrency adverse conditions.
Big Problems Faced By The Cryptocurrency Market
The success of cryptocurrency has no doubt, has generated interest in regarding investing in cryptocurrency. But as it says, nothing is free from challenges. The cryptocurrency market is also not far away from it. It does face some prominent issues that plague its functioning. Let us find out what are they.
Extreme Volatility
Starting with the major issue is price manipulation or too much volatility. It is impossible to estimate the changes in the prices of the cryptocurrencies, which are unpredictable. It means they can either go higher like the bull stock market but can also come down like bear stock market. If there is any fall in the tradable asset in less than 24 hrs, then it is a clear indication of high volatility. Now there is always a reason behind trouble to happen. In the case of cryptocurrency, the factor ‘Whales’ is known to be one of the big problems faced by the cryptocurrency market.
The term whale in cryptocurrency is used for those influential individuals or large players that have the power to manipulate the digital currency price. They can make cryptocurrency market dancing to their tunes.
ICO Scheme Issues
Among the big problems faced by the cryptocurrency market is ICO scheme issues. ICOs are considered an essential part of the crypto market. Investors buy the tokens in exchange for fiat currencies when they are introduced to the market by ICOs. But the fluctuations in the schemes of ICOs cause a major problem to the cryptocurrency market. Entrepreneurs play very smartly during the ICO. They cleverly grip investors in their net by raising the price rise. After this, they smartly cash out and make investors left with coins which have no worth and are useless.
Cybercrime
Cybercrimes are very difficult to deal with. It is a significant issue which cryptocurrency market face. The illegal activities operated by cybercriminals or hackers have resulted in much loss to cryptocurrencies. They are involved in stealing a million dollars’ coins. It proved to be a big loss for the investors and traders by losing all the funds. Because of these unlawful activities, there has been a drop in the price of certain virtual currencies.
Conclusion
The above factors are some of the big problems faced by the cryptocurrency market. Bitcoin is credited with making cryptocurrency a worldwide phenomenon. People became so much interested in buying Bitcoin in India after the ban by RBI got lifted by the apex court of India. But the major issue which affects this dominant cryptocurrency and other altcoin is the unpredictable price volatility. They can be higher at times but can even slope down too. There are other factors involved in it. One big factor which truly defines massive sea creatures is ‘whales’. These are referred to large players who manipulate the crypto market with their choice.
