Nowadays, cryptocurrencies are more ubiquitous than ever. Not only have they been adopted by big names in the tech world like Microsoft and Expedia, but they’re also increasingly being used by visitors to sites like the no-limit casino indulging in their favorite slots, scratch cards, and table games. In fact, the enhanced security, anonymity and efficiency of cryptocurrencies are perfect for online gambling.
However, the cryptocurrency market has taken a fair share of blows over the past few months. With influential figures denouncing the environmental footprint of the market leader (Bitcoin) and national governments making historical judgments about its use within their borders, the prices of most cryptocurrencies have fallen recently. Will they recover? Here’s a look at the latest developments to try and find out.
Tesla and China negotiate double hammer blows
The cryptocurrency market had been getting stronger until a seismic tweet from tech expert and Tesla CEO Elon Musk in May. In his letter, Musk announced that Bitcoin would no longer be accepted by his company due to the enormous amounts of energy the technology consumes in mining coins and approving transactions. Bitcoin’s price was cut by a third immediately afterwards, with most of the other major cryptocurrencies also suffering from the shock waves of the announcement.
A few days later, more bad news for the market followed. Less than a week after Musk’s tweet, the Chinese government said it would ban the use of cryptocurrencies by its financial institutions, banning them across the country. Unsurprisingly, this caused Bitcoin and its counterparts to continue to decline in value, lingering at their lowest levels for many months.
On the way to recovery?
However, if one thing is certain in the cryptocurrency world, it is uncertainty that comes first. While China’s rejection of crypto was certainly a blow to the sector, there was more positive news the following month when the El Salvador government announced it would make Bitcoin legal tender in the country within 90 days.
The small Central American nation will now serve as some sort of guinea pig for how cryptocurrency can function in a real economy, and could potentially serve as a blueprint for other emerging economies.
Meanwhile, the effects of Musk’s June testimony have also been somewhat mitigated. After those involved in Bitcoin mining changed their strategies to use less energy, Musk said Tesla would accept the currency again.
In response, the market has already shown signs of recovery and prices have stabilized not only for Bitcoin but also for other cryptocurrencies. Hence, it seems like crypto can bounce back in the short to medium term as long as it continues to function well on the global stage and has the support of influential thinkers.
While Bitcoin and other cryptocurrencies have had a few turbulent months, there are signs that the situation is calming down and that their market values are experiencing something of a resurgence.