Do the Current Problems of Bitcoin Affect Its Further Prospects?

After the December ups of bitcoin, the investors were hoping for the new heights and price maximums, but the crypto market went in the other direction. Whereas previously it was enough to buy a coin, keep it and sell it profitably on the growth charts, today the rules are different. As the number of problems aroused since 2018, the price of bitcoin is often included in the correction, which lasts for weeks.

The owners of cryptocurrencies started to lose the accumulated savings and panic, selling their earnings in a falling market and taking them into the red. What happened? Which news has negatively affected the price of BTC?

Prohibition on cryptocurrency advertising

In the middle of March, Google corporation officially announced the restrictions on the content related to ICO startups and crypto industry. Even though the ban will take effect only in summer, prices of BTC and other altcoins has reacted negatively to this news. Following the search engine, such social networks as Facebook and Instagram adopted a similar decision.

Concerning the advertising bans, the number of people willing to invest in bitcoin will decrease. Trading volume in the digital ecosystem will no longer increase (it may even fall), which will have an adverse effect on the price of the coin. Finance corporations, whose business is tied to bitcoin, will suffer huge losses. They will lose the opportunity to invite new customers and may sooner or later go bankrupt.

It is no secret that the price of BTC is vulnerable to the news background. Therefore, such restrictions are considered one of the main problems of the digital asset in the short term. Mass sale can start on the crypto market, which will lead to a drop in prices.

Low security

Despite the words of the developers who called bitcoin the most reliable financial instrument, there are still protection problems. And we aren’t talking about blockchain, which is impossible to hack, but about trading platforms and exchanges working with cryptocurrencies. That’s where many users store most of their digital savings.

Recently, the company Dashlane has conducted a study that revealed low security on 70% of trading platforms, providing the services of buying and selling of bitcoins. Because of simple passwords, the exchanges allow to create, there is a real threat of money thefts from the client accounts. According to the director of Dashlane:

Cryptocurrency exchanges and instand exchange services allow users to register simple passwords, which are easy to crack. They put the clients at considerable risk.

According to statistics, almost 40% of trading platforms allow you to create passwords consisting of up to seven numerals without using alphanumeric characters.

Today, theft of cryptocurrencies is the major problem of the crypto community. Most investors who deposited a lot of money in this industry are exposed to hacker attacks, after which they lose interest in working with bitcoin. If the situation doesn’t change for the better, trading volumes will fall and drag down the price of cryptocurrency.

Large-scale market decline won’t happen

Experts suggest that there is no reason for mass sale. Bans of Google and other advertising networks won’t stop the growing popularity of bitcoin. With respect to security, there are many projects, offering effective work with cryptocurrency, but the users themselves should decide, which one is the most reliable. For example, Polyx.net exchange has good protection compared to other platforms.

Any negative news related to the bans, regulation or grand thefts can affect the price of BTC only in the short term. When assessing the long-term dynamics, the coin will have success, world recognition, and new price records.