Bitcoin price has seen almost only one direction since April: down. The value of the cryptocurrency almost halved during this time, one unit currently only costs around 22,000 US dollars. The loss of the second largest cryptocurrency Ethereum is almost two-thirds over the same period. No wonder critics of currencies are already prophesying their demise. However, despite everything, hardly anyone in the United States seems to want to know anything about the disappearance of digital currencies, as reported by the “Handelsblatt”.
Cryptocurrencies are relatively widespread among the American population. 16% of Americans are invested in these currencies or have traded them, the newspaper reports, citing a study by the public opinion research institute PEW last November. Financial institutions continue to be behind cryptos, at least some. “Bitcoin has its ups and downs,” quotes the “Handelsblatt” Ahon Sarkar, director of banking service provider Helix in the second quarter. As with any other asset class, investors should be prepared to invest for the long term and weather the dips, rather than trying to time market moves.
Salary in cryptos
“Digital assets, especially bitcoin, aren’t just going mainstream in the sense that people are buying bitcoin,” the paper said. In the future, many may actually use digital currency like a traditional financial service, for example to get paid their own salary.
Despite the positive mood: The crypto crisis has sparked new discussions about the security of digital currencies and the associated risks to mainstream financial systems. In mid-March, the US government issued an executive order that US authorities should investigate the risks and potential opportunities of cryptocurrencies and the blockchain technology that underpins them. According to the “Handelsblatt”, Ashley Harris, a lawyer at the blockchain start-up Figure Technologies, predicted at the end of May that there would still be turbulent times from a regulatory point of view. (jb)