The cryptocurrency world is every dynamic. The market fluctuations often cause dealers sleepless nights. Over the past couple of days, the price of Ethereum and Bitcoin has witnessed a sharp decline after weeks of increase. Ethereum and Bitcoin have now dropped below the $300 and $5,700 mark respectively.
A close look into the cause of the decline showed that it was due to the controversial release of Bitcoin Gold hard fork. Nevertheless, investors and traders are still optimistic about a possible recovery. In this post, we will be taking a look at some of the major factors that can bring about a possible recovery.
Before we begin, let’s give a brief definition of the key terms:
What is cryptocurrency?
A cryptocurrency is a virtual or digital currency which makes use of cryptography for security. As an exchange medium, cryptocurrencies make a financial transaction or fund transfer between two parties easier and hassle-free.
What is Bitcoin?
Bitcoin is a worldwide cryptocurrency. It is a form of digital public money that is created by comprehensive mathematical computations. Bitcoins are often mined. They are then electrically converted into long strings that have monetary value.
What is Ethereum?
Ethereum is widely known cryptocurrency and blockchain system. It is a network of a giant mass of nodes linked to one another.
Implement Replay Protection
Initially, investors and traders tried to avoid the Bitcoin Gold hard fork due to the fact that it lacked replay protection. The development team promised to implement replay protection prior to the release. The replay protection is required for Bitcoin exchanges and wallets to credit users. Unfortunately, they are yet to implement this leading to a decline in the crypto. The implementation of replay protection is likely going to bring about a recovery.
Adoption of Ethereum
Another important recovery indicator is the adoption of Ethereum. Recently, Blockchain has integrated Ethereum into their mobile wallet. Once investors and traders can adopt, and continue using Ethereum, sooner or later, there will be a possibility for recovery in the cryptocurrency world.