Trend Forecast

As more nations worldwide go cashless, and the range of new cryptocurrency offerings widens, the participation among the general public to purchase digital currencies and investors to invest in them increases. But the speed at which digital currency investment is increasing worldwide is prompting governments to intervene, seeking to regulate, control or cease the growth of cryptocurrencies. For example, the Reserve Bank of India has formed a task force to examine cryptocurrencies as legal tender, stating it is “uncomfortable with non-fiat currencies. And the Peoples Bank of China has announced it is halting its local digital currency exchanges. India and China join Britain, the United States, Canada, Venezuela and other countries that are taking measures that further suggest regulatory oversight. While we forecast volatility in the cryptocurrency markets, we expect dramatic correction, and some might ultimately crash, only to be replaced by new cryptos. As we have stated since the onset of the crypto trend, the highest volatility threat will be driven by governments exerting more control and imposing regulations for any reason they want and at any time. In addition, as the creation and use of cryptocurrencies continue to expand worldwide and new players enter an increasingly crowded field, the market will often respond with rapid and dramatic changes.