It has been a volatile few months for cryptocurrencies. After record highs in December, the cryptocurrency market crashed down quite low, but had shown signs of beginning to bounce back. The Ripple price (XRP) has taken a turn for the worse today, showing that investments in this cryptocurrency are anything but safe.
Near the end of 2017, the Ripple price (XRP) was higher than we had ever seen before. Alongside fellow cryptocurrencies like Bitcoin and Ethereum, we saw a massive spike in value that brought these new investment opportunities to values we had never thought possible at the beginning of the year. With the huge rise in price, many first-time investors took the opportunity to make a quick buck as the currency continued its meteoric rise, only to have their hopes dashed as the crypto market took a significant downturn in the beginning of 2018. The Ripple price (XRP) showed signs of recovery over the last couple of weeks, with the majority of cryptocurrencies starting to increase in value. Today, however, virtual coins across the board took a dive that reinforces the idea that investing in cryptocurrency is a risky endeavor.
For many, the massively volatile Ripple price (XRP) is worth it for the potential for a big payout. Those who invested at the beginning of the currency’s lifespan have seen huge growth, and since the beginning of 2017 there has been a big spike in value – despite the recent crash in early January. Many experts believe that the Ripple price (XRP) will bounce back from this low, viewing it simply as a blip on an overall upward trajectory. It’s true that the value of these currencies fluctuate by design due to the fact that their success and failure is tied to speculation, but recent developments in the political landscape may mean that a high following this recent low is less likely than previously anticipated.
When cryptocurrencies got their start, they were mainly a way for techies to participate in a new technological investment. When the public got word of these new opportunities, however, what started as a pet project eventually exploded into an industry with a market cap in the hundreds of billions. As an investment with a low barrier to entry, virtual coins have brought many newcomers to an investment scene largely populated by more educated and experienced professionals. As the Ripple price (XRP) and the price of other cryptocurrencies continued to grow, the influence of these new opportunities became too big to ignore – causing financial regulators and governments to take note. Unfortunately, the response of multiple influential countries has been negative, potentially spelling trouble for these newcomers to the investment scene.
After a document released from China a few months back, Ripple Price (XRP) values took a dive as it was revealed that the country may be increasing taxes on virtual coin miners – a major problem for the organizations that called the country home due to the low power costs. There was also some more negative news, as China shut down the largest cryptocurrency exchange within their borders and banned Initial Coin Offerings. Israel was another naysayer when it came to cryptocurrencies, with discussion of a ban on Bitcoin pending review from their financial regulators. Add to that tighter restrictions in South Korea that required traders disclose their identity when making trades, and it’s easy to see that governments worldwide aren’t sure what to make of cryptocurrencies. All of these factors have an impact on the Ripple price (XRP) and could negatively affect the currency as it tries to climb back from this downturn.
It’s difficult to determine what exactly caused this most recent dip in the Ripple price (XRP), but we’ll have to wait and see to find out whether this decrease in value is a momentary fluctuation or an ominous sign of a further crash to come.