Various Financial Institutions along with government is trying to instigate fear within the cryptocurrency community
In the year 2008, the American government experienced an economic crisis. The citizens were very furious with the government as well as the Financial Institutions, due to their hasty decisions are taken, in order to save the various banks of America. People were predominantly angry because their personal funds were being utilized by these institutions without their consent. It is a coincidence, but the next year in 2009, Bitcoin was initiated which completely eradicated the need for any centralized form of bank. Therefore, the people could trust the system, as no uncalculated decisions would be taken by a single authority. The decentralization of the cryptocurrencies gave the power of decision making to the people but not anyone else.
How are they suppressing the cryptocurrencies?
Regulations as well as the banning of the cryptocurrencies across the world, has been very rampant as the banks and financial institutions across the world, are familiar about the destructive nature of the usage of cryptocurrencies towards their business. The major fear of any Centralised bank across the world, is the development of cryptocurrencies as people would shift their perspective towards them, which would indirectly affect their working mechanism. They are constantly looking forward to suppressing the popularity as well as the usage of the cryptocurrencies among people, but they don’t understand that things which are, the most suppressed are the most exposed ones.
A single FUD dosage is sufficient for fluctuations
The cryptocurrency market is highly volatile in nature and mostly depends upon the notion as well as the predictions made by the various media channels across the world. The Fear Uncertainty and Doubt, shortly FUD, among the cryptocurrency space, is one of the key factors that must be kept in mind, while the undertaking a price prediction of the cryptocurrency market. For an instance, imagine that a prominent cryptocurrency figure, predicts that Bitcoin prices are going to fall. Then all the Bitcoin holders would come forward to sell their funds in order to avoid losses, but as no buyers would be available for the same reason, they would be forced to reduce the prices which would indirectly result in the Bitcoin fall.
Misdirection by them
This particular loophole is extensively made use of by the Centralized Financial Institutions across the world, in order to reduce the usage of cryptocurrencies and make the people completely abandon them. Specifically, they incorporate fear within the cryptocurrency enthusiasts towards the cryptocurrencies as it is a great Bubble which might burst at any point of time, which would invariably result in losses. It is very astonishing to know the various misinformation campaigns are on rising, to misguide the people towards a false truth about the cryptocurrencies.
Suppressing the FOMO
The uncertainty and the volatility within the crypto market is not emerging from nowhere, but apart from the investors, even the YouTubers, bloggers, key people in the cryptocurrency domain are contributing to the fluctuation in the crypto market. They try not to instigate a Fear Of Missing Out (FOMO), among the people towards the cryptocurrency adoption. Many Financial Institutions are investing in some Cryptocurrencies, with a sole intention to disrupt it completely in the future.
The Vicious Cycle
The governments are following a trendy pattern in which first they would be abandoning the permission for the usage of cryptocurrencies and then they would slowly allow cryptocurrencies, but along with the control of the government on it. This would indirectly lead to the centralization of the cryptocurrencies, which is exactly opposite to the inherent nature of the cryptocurrencies. In a nutshell, they are trying to gain access to the cryptocurrencies, but as it is decentralized, they are finding it highly challenging to disrupt the technology and eradicate it completely from the minds of people.
The cryptocurrencies have undoubtedly revolutionized the way, the current financial economy works by incentivizing the whole process. They have increased the transaction speed as well as reduced be cost required to transfer the funds across the world. The cryptocurrencies have also added on the security and reliability of the transfer of funds as it is decentralized in nature.