Bitcoin (BTC) and the rest of the crypto market included, seems to be more volatile than ever, as its price oscillates around $4000 (below $4000 for now). The market did gain some momentum during the first week, when the price went upward of $4000, however its has once again descended leaving investors agitated at the continued volatility.
This kind of behavior, was not particularly unpredictable, because the value of cryptocurrencies has been known to be the opposite of static. As of now the Bitcoin (BTC) holds a value of 3545.09 along with the rest of the market bathed in red, which seems to be changing within the matter of minutes.
Due to the fact that bitcoin uses Proof Of Work, it has to be mined by solving complex mathematical problems. For this purposes giant mining rigs are bought which provide the necessary computational power to mine them. It is safe to say that given the situation of market, no new miners are flocking to mine Bitcoin. The bear market is also responsible for causing problems for the giant corporation like Bitmain, the chinese mining giant. The crypto mining giant has been letting go of their employees due to the huge losses they have endured over the past few months.
Last year, Nvidia also halted the production of its mining units due to the decrease in the number of miners.
The delay in providing a regulatory framework for regulating cryptocurrencies in many of countries all over the world has also had detrimental implications for the ecosystem of cryptocurrencies. Where the value of cryptocurrencies changes with every passing moment, most governments advise against investing in cryptocurrencies. The reputation that cryptocurrencies have amassed over time due to the scams that been associated with cryptocurrencies have made governments more and more doubtful about drawing up regulatory framework for the digitized currencies.
To answer what implications will the continued volatility and bear market for various crypto and blockchain based projects, it can assumed that none of this is going to bode well for them in the long term. If the market refuses to recover, there are bound to be some shut downs of existing blockchain based projects, they might run out of funding, there are bound to be some failed ICOs as well. That is however more connected to the fact, that most of the projects that qualify to be securities need to be registered with the SEC, as of recent it has been made of utmost importance by the SEC.
Nevertheless, as we have witnessed in the past, this descent could either be short-lived and the crypto prices could shoot up or the market could keep on hitting new as 2019 progresses.