As the cryptocurrency market develops and expands, it continues to face challenges which can be thought of as growing pains. It seems as if the Chief Technology Officer and founder of bitcoin.com, Emil Oldenburg, has lost hope in bitcoin. Oldenburg classified bitcoin as a very high-risk investment due to its slow and costly transactions. He’s not out of the crypto-world altogether though since he claims that he has now turned to Bitcoin Cash. There’s definitely a lot of uncertainty in the cryptosphere and cryptocurrency exchanges are also experiencing significant problems.
EtherDelta, a decentralized cryptocurrency exchange for Ether and Ethereum-based tokens, became the target of attacks when hackers gained access to its DNS server. Quite often, EtherDelta manages to list promising altcoins from ICOs ahead of the more well-known exchanges. In the last few months, several cryptocurrency exchanges have been hacked. Youbit, another popular South Korean cryptocurrency exchange, has been hacked twice. It is now filing for bankruptcy.
San Francisco based cryptocurrency exchange, Coinbase, recently added support for Bitcoin Cash. However, it soon had to suspend Bitcoin Cash transactions due to allegations of insider trading. Coinbase is valued at $1.6 billion and its app recently became the #1 most downloaded on the Apple App store. Brian Kelly, founder and CEO of BKCM, an investment firm specializing in digital currencies, has said that, “Coinbase is viewed as the New York Stock Exchange of cryptocurrencies”.
Despite these major and pressing issues with bitcoin and cryptocurrency exchanges, the craze around the crypto-world continues to rise. The NYSE Arca, a prominent and completely electronic U.S. exchange, recently informed the SEC that they’d like to list ProShares bitcoin ETF and Proshares short bitcoin ETF. This move would enable traders to place bets on cryptocurrency futures contracts now offered by Cboe and CME. It could be argued that these activities are signals that bitcoin and cryptocurrencies are becoming mainstream.
Cryptocurrency exchanges, particularly Luxembourg based Bitstamp, are being used as a point of reference as financial powerhouse Bloomberg continues to add more cryptocurrencies to its terminal. Initially it was just bitcoin, but now Ripple’s XRP, Litecoin, and Ethereum were added a few days ago. Reputable banks and global financial institutions regularly utilize Bloomberg’s terminal. People who think bitcoin and other cryptocurrencies are a bubble might want to reconsider because the crypto-market has begun to exhibit signs of resiliency.
Cryptocurrency exchanges have been popping up around the globe. A tech company based in Perth, a city in Western Australia plans to launch an Australian crypto exchange. Trading will initially take place primarily in bitcoin and Ethereum. So far, $750,000 have been contributed by investors to finance this project. The banking and financial world will have to become more responsive to the crypto-market because it’s well on its way to becoming a major player in the world of money.