For the longest time there was a long stretch of time where different decentralized currencies could take the place of more traditional options, particularly with the big names in Bitcoin and Ethereum leading the way with high price points. Part of the difficulty has always been finding more legitimate markets to be represented in. While Bitcoin is available largely in online gaming options like some slots here, decentralized currencies are yet to find more mainstream options, though there had been a small nod toward Tesla perhaps picking up before environmental concerns put an end to that.
A recent change has come as EU legislation aims to make all crypto payments more traceable – something akin to what’s expected with a traditional bank. The suggestion is that all accounts registered to crypto will require the users to give personal information like names and addresses in order to lend more legitimacy to the different currencies. It is a strange choice, however, as the whole intention of decentralized currencies was to remove the need to have all personal information available. It was intended to be something that was easily accessible and transferrable without the need for big institutions as middlemen. This legislation could certainly cause the most devout users to pull out of using different coins as the whole point of using the currencies is now gone.
Other changes have led to the huge drop seen with Ethereum too, as the co-founder has stepped away from crypto. Different publications are reporting different reasons, but it seems the most common reason from interviews is that Di Iorio stepped away from crypto after feeling unsafe. Crypto still holds some negative connotations as something only used for illicit purposes, and with such a huge value growing with Ethereum, as his own stake was worth $1 billion back in 2018 before the price more than doubling, it’s a huge figure to be holding on to with only one physical point of storage. Not only for the price drop, but big figures taking a step back is never good as it only puts further strain on something trying to grow. And with crypto distrust already existing, having someone as prominent as the co-founder of the second largest crypto offering stepping back, certainly isn’t a good look.
With the current crackdown in China too, it’s certainly a rough period of time for crypto and permanent change is almost inevitable too. For those still hanging on to big claims it’s going to be tough to see the huge price swings, and with proposed changes that could come soon, it may start to look like the end is closing in unless something big intervenes.