Is Cryptocurrency Going To Reset Its Lost Base?

Most of the cryptocurrencies saw a price surge lately with many positive updates coming into picture. For instance, Japan's e-commerce giant Rakuten (Rakuten touted as Japan's Amazon) is set to update its payment application to support Cryptocurrencies. The price of cryptocurrency is based on its recognition and use; and the same moves up as more and more firms start recognizing it as a mode of payment. Rakuten says it will launch an updated version of its mobile payment application on 18th March 2019 and the new version will enable crypto payment; hence, it will be an all payment solution embedded into one platform.

Rakuten, for supporting cryptocurrency got highlighted, when its American portal started to accept Bitcoin payment, and later the company acquired a Japanese crypto exchange as the company believes that the cryptocurrency-based payment in e-commerce, offline retail and in P2P payments will grow in future.

The further boost for the prices came from Indonesia, in which Indonesia's commodity future trading regulatory agency passed a regulation that will recognize Bitcoin and other digital currencies as a trading commodity. The title of trading commodity marked Bitcoin as a mean of acceptance among the Indonesian government and thus supported the Crypto prices as an increase in recognition leads to a higher valuation of the currency among market participants. Later the head of the regulatory agency, Indrasari Wisnu Wardhana said that the move would protect the people who want to trade in cryptocurrency assets from fraudulent sellers and thus increase the security risk associated with the cryptocurrencies.

This major event/news supported the major cryptocurrencies. Since 17 February 2019, the day on which this news was released, Bitcoin has surged 7.6% from $3600 to over $ 3877, crossing the $3600 mark, where the prices were consolidating from the past few weeks. Ethereum was the top gainer amongst the cryptocurrency pack, and it rose 18.85% to $145.72 with XRP up by 8.38% to $0.3230, and Litecoin surged 9.75% to $47.60. In fact, the currencies have now moved up from these levels as well. The positive market moves brought relief to the cryptocurrency investors, who have witnessed a steep decline in prices in the past one year.

However, the hash-rate (the amount of power cryptocurrency network consumes to process transactions and generate new units) of cryptocurrency is on a surge and may raise concerns about the environmental impact and can see some actions from the major economies. The investors in cryptocurrencies are eyeing on the developments to gauge the performance of the assets as any fall will likely lead to a bloodbath amid offloading by investors in case of a crash.

Despite all odds in the past years, cryptocurrency has started its 2019 journey with a surge as the adoption of significant cryptocurrencies is supporting the prices. The United States Securities & Exchange Commission is also looking forward to approving Bitcoin ETFs in the future, and the movement of the cryptocurrencies would still depend upon such developments. J.P Morgan developed its cryptocurrency and christened it JPM coin this is considered as a major shot in the arm for cryptocurrency, this development is significant considering that the CEO of JP Morgan, Jamie Dimon was critical of cryptocurrency in the past.

The surge in acceptance of cryptocurrencies as a mode of payment and other key usage can make the valuation higher for it and in turn, will support its prices. The investors in the crypto-segment are waiting for such development while remaining cautious of any event that might lead to further fall in the digital asset.

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