Who Controls Cryptocurrencies?
Cryptocurrencies have been in presence for more than ten years now, with the inception of Bitcoin in the year 2009. Nonetheless, the cryptocurrency market is still in its babyhood.
With such a youthful market, it is natural to have some issues and misunderstandings amongst the people and the network. It, by extension, results in exceptional volatility in the market, with the costs of diverse cryptocurrencies fluctuating from ground to sky and vice versa in a matter of days. This article will examine the four entities present in the cryptocurrency market, their roles, and their dynamics. It will also look for an answer to the question: Who controls cryptocurrency in India?
There are presently four entities in the cryptocurrency market:
1. Small Fishes
As the name suggests, small fishes are the minor players in this huge cryptocurrency market. Now the question arises: who is considered a small fish? To put it simply, a small fish is any crypto investor that does not greatly influence the cryptocurrency market as an individual. It could vary from a housewife placing 10,000 into Bitcoin to millionaires putting 2 crores into cryptocurrency, and such an amount is barely something to look up in such a vast market.
A small fish holds negligible influence in the cryptocurrency market as an individual. Nevertheless, when all the small fishes collaborate, it would make or break the crypto market, or the coin as well.
Whales are individuals or groups of individuals who can shake the cryptocurrency market. It encloses renowned individuals in the world of finance, including CEOs or a group of investors that can invest and trade hundreds of millions of dollars into the budding cryptocurrency market. Their belief alone could swing the cryptocurrency market for notable individuals such as CEOs who have a great impact on the best cryptocurrency to invest in.
3. Institutions Or Creators
The name ‘Creators’ is pretty detailed; they are simply cryptocurrency developers. There are presently more than 1400 different cryptocurrencies present in the market, with some having tens to hundreds of staff, to a small company of only a few developers. There are so many different types of cryptos because anyone can create their crypto with comparative comfort. It results in many cryptos that are not useful being released, even when funding and development are deficient.
Government regulations have been one of the most significant factors influencing the cryptocurrency market. Unlike stock exchanges, where prices can be relatively stable due to some rules, the cryptocurrency market is still in its infancy. Most of the investors in the cryptocurrency market work based on speculation rather than facts. Thus, any bad news, especially regarding future government regulations, would cause a tremendous price drop. As noted, before, the sudden influx of investors had governments precipitously implementing temporary rules to protect their citizens. Many governments have yet to put any form of protection for investors in place. At present, governments (China, South Korea, United States, Singapore, etc.) are scrambling to implement various measures to protect their citizens.