Jobaaj Stories
Before you proceed on this article further, Let me take you back to the evening in June 2011, It was a time when a pleasing mug of coffee slipped from the trader’s hands. Bitcoin, which soared from $2 to about $32 suddenly fell. If you are an investor since then, you must remember what a period it was. This is not a single horror story!
That was a time when crypto wasn't much popular, but now there are lots of media covering these terror tales of the digital currency which is known to fill pockets with fortune.
Today, Whether a Gen Z or a Millenial, a person is ready to risk some pounds awaiting a bright future ahead in a digital wallet that is so volatile. There’s an article published by Guardian in the June 2022, A Man noticing an online boon of crypto decided to put some money in search of a piggy bank, so that he can keep his money secured. The digital asset that this person chose was Terra, whose value spooked him later in May which took nearly $10,000 from his account.
Every week the traders are left with the question of what will be currency’s next move.
Well, it still seems anticipatory since last week it was expected to reach over 50 lakhs and now we can see that expectations were very high.
The Crypto market was in the bear phase until last week but Business Magnate Elon Musk’s move made us scratch our heads again. Elon’s Space X reportedly divested the Bitcoin holdings.
But, Traders have been through the worst even in the last year as reported by CNBC 2022 exposed the many flaws of Cryptocurrency and served as a reminder for others on why financial regulation exists. Reports of bankruptcies became more popular and left clients with their inability to access funds.
With the midnight of December 31st, every trader wished for respective currencies to set the throne on fortune. But, Every year comes with some new hiccups in the market and so. Last year, the only positive in the market of Ethereum 2.0. It will be soon to say whose year will it be, As only December will tell.
Cathy Yoon, chief legal officer at crypto firm MPCH said ‘‘There should be more education in terms of how you can safeguard your own crypto," she said. "There needs to be better financial literacy."
This article focuses on the volatile side of Cryptocurrencies though, no one can deny the endless financial aid through it. When the Russia and Ukraine war broke out, cryptocurrency started donating and providing aid to Ukrainians. Through crypto asset donations, the Ukrainian government and a nongovernmental organization (NGO) providing military support raised $63.8 million in one month.
An online world where we are greeted by such intriguing news, beware! Recently China’s property giant Evergrande declares bankruptcy! Yes, Evergrande, once a leading player in China's property development sector, has become a symbol of the country's current real estate troubles.
This story takes us back to 2021 when this giant was failing to meet most of its financial commitments. It only rang the bell in many hearts this August. On Thursday afternoon, cryptocurrency prices plunged, with BTC dropping more than 7% to $25,600 within 10 minutes, its largest one-day drop since the FTX collapse in November 2022. With accumulated liabilities exceeding $300 billion, Evergrande reported an $80 billion loss over the last two years. As this ship sailed, a tide of shock hit the crypto market hard.
This unregulated market just needs a snap of a finger to throw panic into the digital market. If we were able to grab your attention until now, let us just make you familiar with some more factors that can send a jolt to the graph of the cryptocurrency prices with just a little ignition.
This is to remind you of the collapse of SVB, it seems the market hasn't recovered from the biggest jolt of the year.
A Currency that runs on the web is often hunted down by hackers which can be a major reason for its fall from time to time. In 2022, Solana-based wallets were drained which happened due to a bug in the same. The losses were estimated to be around $8 million which took the sleep of investors away. Cryptocurrency is a web where anything can fall either to be trapped or ready to hunt. We came across such a happening in 2014, where about 850,000 BTC got stolen from Mr. Gox's exchange, and with heavy hearts, they had to file bankruptcy. It took them 8 years to claim a small portion of the lost amount back.
“With Bitcoin, no one has the monopoly of Information”
- Tyler Winklevoss
These are the reasons CEXs should strengthen their security and insurance policies. Many high-profile CEXs store their crypto in cold storage and use two-factor authentication as an extra security measure.
As we navigate this uncharted territory, it's essential to recognize that while cryptocurrencies can indeed be a catalyst for financial growth and positive change, they also demand a vigilant and informed approach.
No one has seen the future but one cannot deny new possibilities to it. Crypto’s market has made lots of news providers keep their eyes on the news all the time due to the volatility of the market. There’s a reason why this is called a borderless trade. This is an unregulated Market as it can even lead to market manipulation and some other related risks. Elon Musk, Barry Silbert, and Michael Novogratz who are even known as leaders in this trade can’t even hide their fears about a graph that can unexpectedly rise and fall.
As the lessons from the past seek to provide some valuable knowledge, We should go back to what crypto is from time to time, need to learn a little bit more about the broadest blockchain technology on which crypto runs. This will give you some insights into the precautionary measures one should take. Suggestions come from many expert sources like investing safely and not staking it all, as the market is highly volatile. Keeping protective measures, on the other hand, safeguarding wallets from hackers. Last but not least, follow the protocol of your respective country.
Written By Kratika Agarwal
Also, Read Why did the crypto market decline in 2022? Why did it fall once again?
Also, Read From Barter to Bitcoin: The Journey of Currency through History
