It seems that even this Thursday’s weather in Mexico City has affected the market of digital assets, since we find ourselves amid of a cloudy, cold environment and without certainty of where it will move in the upcoming days.
The crypto market showed a recovery of $11.62 billion USD, for a total capitalization of $286.18 billion. Although these figures may seem positive, for this financial market is an insignificant recovery compared to the booming numbers of December 2017.
Today, the uncertainty about the value of cryptocurrencies keeps investors uneasy because of the market volatility. Some people keep betting on these low prices, while others have decided to cash out what is left of their investment by getting rid of their digital assets.
Coin Market Cap showed a market in red numbers, with Bitcoin's price at $6,725.18 USD, and without a sign that the most popular cryptocurrency could finally break the $7,000 mark.
A series of news have provoked small losses, preventing the long-awaited takeoff of the market, such as the theft of $30 million dollars, on June 19, against Bithumb, an Exchange based in Japan and one of the largest platforms in the world. This generated more uncertainty, causing panic sales.
However, Litecoin's founder Charles Lee, said that acts of piracy against Bitcoin do not affect its fundamentals: “If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”
Lee also stressed that both the people and the Exchange platforms are in the middle of a learning curve in this new economy. The Exchanges must enhance their security systems and people will have to be more careful with their cryptocurrencies, until a more strict control of them is achieved.
On the other hand, many countries keep trying to impose regulatory measures, derived from the fact that central authorities couldn't ban the use of digital assets, but at the same time they found a great advantage in the use of the Blockchain technology.
We continue to experience lapses of growth in this new economy, a lot of trial-and-error work, changing paradigms around the world, and the certainty that financial digitalization keeps moving forward.
Bitcoin's value will remain unstable until we overcome this learning curve that we all involved in the crypto world are going through. The market could take an upward turn tomorrow, but it's more realistic to assume that this economic maturation process could yield results in the mid or long term.
By Omar Cortés