Cryptocurrency
Cryptocurrency Market Plumbs New Depths in 2018 via @WSJ
As reported by The Wall Street Journal, “A broad investor retreat has pushed the market for digital currencies down 70% from its January high, reflecting user frustration over their modest inroads into commerce and a general shakeout in speculative investments. “The value of all cryptocurrencies in circulation this week fell below $200 billion for the […]
As reported by The Wall Street Journal, “A broad investor retreat has pushed the market for digital currencies down 70% from its January high, reflecting user frustration over their modest inroads into commerce and a general shakeout in speculative investments.
“The value of all cryptocurrencies in circulation this week fell below $200 billion for the first time in 2018, its lowest since November. The selling has been widespread and, some holders say, indiscriminate. Of the top 100 cryptocurrencies by market value, 98 were down over 24 hours, according to research site CoinMarketCap.
“Cryptocurrencies are digital tokens that aim to allow users to exchange value online quickly and cheaply, mimicking some qualities of currencies such as the dollar and yen without the physical infrastructure. Proponents have said they will overtake such so-called fiat currencies, but so far few uses have emerged other than trading.
“Bitcoin, by far the most widely used digital currency, this week fell below $6,000 for the first time since late June. Ether, the second-most-used coin, dropped 17% over 24 hours, according to CoinDesk.
“Over the past two days, ‘enough people started freaking out’ and selling assets that it led others to start selling as well, said Kyle Samani, managing partner at crypto hedge fund Multicoin Capital.
“While the intense selling reflects a handful of market and economic factors, many users say plunging cryptocurrency prices point to the apparent failure of bitcoin, ether and other popular units to gain widespread adoption in the economy. Many view such a step as necessary to justify valuations that despite the recent selling remain well above year-ago levels.”