Despite a Rough Road Ahead, Cryptocurrency Is Fighting On
The battle waged by Warren Buffett proved easy to handle, but South Korea’s regulatory kerfuffles have caused cryptocurrencies to take a tumble over the past few days. Bitcoin is trading at just over $13,000 USD at press time despite a solid high of over $17,000 just a few weeks ago. But that doesn’t mean crypto is down for the count, or even close.
Losing the Battle, but Winning the War?
Cryptocurrencies have shown they have the strength and stamina to take the fight against doubters and other enemies to new heights. This is exactly what’s occurring now, with digital currencies enduring turbulence at present. Ethereum has seemingly fallen down into a choppy trading channel once more, while Ripple took an even bigger tumble and fell almost 50 percent from its recent $3 high.
Still, people haven’t lost their faith in crypto, and despite the recent losing streak, it appears things are only going to continue heating up in the cryptoverse in the months ahead.
A Small County on the Map
The small region of Wenatchee, Washington, for example, finds itself very grateful for bitcoin, though not for reasons you might expect. Sure, its residents have undoubtedly grown rich from it, but the area’s cheap electricity offerings have made it a recent hot-spot for cryptocurrency mining, attracting miners and enthusiasts in droves whilst potentially opening the doors to applicable blockchain ventures in the future.
Wenatchee, like most of Washington, offers cheaper electricity than most towns in the United States. The national price average hovers at around seven cents a kilowatt, while Washington offers the same amount for four cents. Miners are attracted to the idea of garnering more coins while saving on the energy they need to do it.
The city’s head of local power, Steve Wright, excitedly explains:
“We’ve come from just a few people out there who have been knocking on the door all-of-a-sudden to people who are banging on the door pretty loudly. We have not only low-cost electricity, but also very good access to the Internet. People put those two together and think ‘opportunity for bitcoin.’”
Rising from the Ashes
Ripple is also looking to recuperate from its recent losses through a newfound partnership with MoneyGram, a money transfer company based in Dallas, Texas. Ripple is paying for MoneyGram to test XRP to see about reducing fees for users and quickening payment speeds.
Ripple CEO Brad Garlinghouse stated, “The inefficiencies of global payments don’t just affect banks. They also affect institutions like MoneyGram. Money transfer companies are incredibly important because they help people get money to their friends and loved ones.”
Praise for Bitcoin
And despite its sufferings of the past week, bitcoin is being placed on a high platform by figures like Zach Pandl, who co-directs the foreign exchange and emerging markets division at Goldman Sachs. He feels the bar for bitcoin is relatively high, but he’s confident the currency will rebound and earn a permanent (and deserved) place in the financial arena.
“Bitcoin (and cryptocurrencies more generally) offer viable alternatives in countries and corners of the financial system where the traditional services of money are inadequately supplied,” Pandl boldly claimed, though he did add that bitcoin could continue to face regulation hurdles in the coming months before finally reaching mainstream acceptance.
So, while the crypto-cruise may have hit a few snags along the way, the damage doesn’t appear to be permanent, and users can rest on the probability that bitcoin and its digital cousins should find their way once again.
Will cryptocurrencies spike again in the coming weeks? Post your comments below.
Images via Pixabay, MoneyGram