Decline of Cryptocurrency
Cryptocurrency has seen a decline in value over the past few years. This is due to several factors, including:
1. Regulatory uncertainty – A lack of clarity from governments and regulators about how cryptocurrencies should be regulated has led to investor uncertainty. This creates an environment where investors are less willing to invest in cryptocurrency as there is no guarantee that their investment will not be affected by future regulations or legislation.
2. Lack of institutional involvement – Institutional money (such as banks, pension funds etc) remains largely absent from the market, meaning that retail investors have been left with little choice but to sell off their holdings when prices start falling. The absence of large institutions also means that it can take longer for price trends to become established and may lead to greater volatility than would otherwise occur if these larger players were present in the market.
3. Increased competition – As more digital currencies enter the market they become increasingly competitive with each other, leading them all vying for attention and adoption amongst users which often leads some coins losing out on this battle resulting in lower demand and subsequently declining values over time compared those who gain traction quicker within user bases
4 FOMO effects – Fear Of Missing Out (FOMO) can drive people into investing heavily into certain assets at points during a bull run only for panic selling when prices begin dropping again leaving many people worse off financially than had they invested sensibly throughout instead chasing after short-term gains .
