Bitcoin, Ethereum, and Ripple are regaining value after a brutal week that otherwise had the cryptocurrency world begging for mercy. A major market crash slammed these currencies and the rest of the crypto market. As these big three bounce back today, relieved investors are surely interpreting it as a sign that all is well and all will be well.
Within the past 24 hours, Bitcoin climbed from nearly $9,000 to more than $12,000, Ethereum is up 6.8%, and Ripple came screaming back a 30% gain. So come on in, the water’s fine.
The crash has been attributed to all kinds of perceived causes, but the markets got kneecapped by three governments expressing major cryptocurrency skepticism (if not outright resentment) at approximately the same time this week. France, Germany, and China all came out swinging against cryptocurrency technology to differing degrees (to be sure, China is always swinging against it like it’s a constitutional requirement).
Though bitcoin and Ethereum values may sloppily stumble all over the place like a junior investment banker at an East Hampton bar, the decentralized technology that makes cryptocurrency work can effectively never go away. Just as major governments may stand firmly in the “no crypto” camp, there are others that will identify the appeal of implementing some kind of formal, state-backed cryptocurrency.
The Republic of Belarus is the newest mover and shaker here; president Alexander Lukashenko just signed a decree that not only legalizes cryptocurrency, ICOs, and smart contracts, but makes them tax-free until 2023 as well. Neighboring Russia is also establishing itself as pro-crypto, with favorable legislation in the works and already being widely talked about.
For the foreseeable future, countries will surely disagree over what role cryptocurrency can or should play in the world economy. Each will make a decision on how to best engage with the new technology (if it engages at all), and geopolitical decisions of this magnitude will surely affect the value of currencies that know no borders.
Cryptocurrency values change because the future is unknowable. Good and bad alike, real world events take place that affect everything from the price of GE stock to the price of bitcoin to our personal mood. Cryptocurrency investors are surely in slightly higher spirits with today’s market representing something of a rainbow after a storm.