Includes current issues in the cryptocurrency industry

The industry is still suffering from business failures, construction failures, hackers and other weird things, just like in the beginning.

This month, the value of Bitcoin and other cryptocurrencies hit the CoinMarketCap moon due to pricing errors.

Cryptocurrency has made great strides thanks to niche events among geeks and Redditors in 2021. Wall Street has increased its inclusion, and Morgan Stanley CEO James Gorman has announced that it is no longer an exception. New York Mayor Eric Adams has said his salary will be determined in Bitcoin. Symbolic mania has influenced popular cultures, from sports, entertainment and recreation to luxury auctions. Major League Baseball referees also wear the FTX Exchange logo on their chest.

However, the industry often fails to perform important tasks and suffers from major problems such as malfunctions, malfunctions, hackers and other unusual incidents.

When the value of the digital token is not proportional, it can be considered a scam. The cryptocurrency is now worth over $ 2 trillion in real value if the statistics are right and its supporters wish to restructure beyond the traditional financial system. The ability to do so and the longevity of cryptocurrencies will depend on repairing and resolving results and security issues where possible.

Larry Tabb, director of business models research at Bloomberg Intelligence, said the industry has adopted a "manageable and fast Facebook model." "It becomes a bigger problem because there are no rules to solve these problems. If I am bored with the trade, I will go to other players."

People who believe in cryptocurrencies believe that interference may be felt in a business that is still in its infancy. They said they could find a place. maybe. No matter what the future holds in 2021, there will be a lot of big mistakes.

This month alone, CoinMarketCap, the most popular cryptocurrency value, has created incredible data for the entire market. The value of Bitcoin reported on the web exceeds $ 800 billion, and the total amount of tokens in circulation is worth around $ 15 trillion, or roughly 660,000 times the gross domestic product (GDP) of the United States.

On December 14, CoinMarketCap announced inaccuracies and insane prices for crypto tokens, including Bitcoin and Ether.

The company behind the Binance digital asset exchange has responded in a unique way to cryptocurrency. I tweeted eloquently and comically. “What does it take to be a billionaire in a matter of hours? We write that there is happiness in crying. behind. The reaction of some industry analysts is not strongly recommended.

This event has passed, and as such, the businesses involved are also ready to forgive and forget. Emilie Choi, President of Coinbase Global Inc., said in an interview with the Bloomberg Technology Summit on December 15, “Honestly, this is just one sign of a new boom.

It is as if the CoinMarketCap incident is not hurting anyone, but otherwise it is not. Some mistakes caused Bitcoin to drop sharply, further influenced by the fact that automatic security features, such as the fuse mechanism in the US stock market, were not common in cryptocurrencies. In October, the world's largest cryptocurrency rebounded after falling around 87% due to a trader's issuance algorithm. In early December, Bitcoin experienced a modest but still painful drop as traders recklessly attempted to sell too much on lower volumes over the weekend. If there are not enough competitors around, 24 will be presented. / 7/365 Cryptocurrency market.

Certain barriers prevent investors from trading. On May 19, when Bitcoin fell more than 10%, Coinbase and Binance were both in deep turmoil. September 30 Bitfinex malfunctioned.

Then there are times when issues arise with the blockchain infrastructure that drives the cryptocurrency. Solana appeared in 2021. As Ethereum's competitor, it is a global supercomputer that runs software called smart contracts. However, Solana came down to 5 p.m. in September, causing weak but crippled growth in the financial division (or DeFi).

Additionally, a project developed by Solana-Pyth, who is considered a major player on Wall Street as a participant, reported a 90% drop in the value of Bitcoin services due to computer software not working. in September.

These are just a few examples among many.

Billionaire FTX CEO and CEO Sam Bankman-Fried told Bloomberg this month: “This is a real problem that needs to be addressed, but I believe there is a simple solution to many problems. How "in the podcast.

However, after a 3.5 hour drop on the New York Stock Exchange in 2015, most commodities performed well and the crash of the United States Securities and Exchange Commission allowed traders and exchanges to ease software exchange.

Cryptocurrencies are under less scrutiny, at least for now. This means that most companies can decide which protection to use (if any). A lot of Wall Street people come out there with the idea of ​​traditional defense. However, the domain was created by people with no previous experience in finance, and you might not be sure what it would take to create a medium that could change. Change quickly, change today.

Wall Street projects high wages, increases 'military' cryptocurrency

“When you look at the traditional exchanges where management has focused on safety, accountability and non-stop start-ups, it's different from what you think,” Bloomberg Intelligence's Tab said.

FTX's Bankman-Fried and Brett Harrison, Chairman of FTX.US, have moved from traditional finance to cryptocurrency, including the takeover of trading firm Jane Street. “We used to do other swap work,” Harrison said in his “What's Next” podcast. The FTX has what is called a price bracket, which protects the market in the same way that a traditional market does if the price far exceeds the current level. . "I wouldn't have done this if I hadn't grown up in this environment," he added.

Robert Zagotta works at CME Group Inc., the largest derivatives exchange in the United States, and is currently the CEO of cryptocurrency firm Bitstamp US. He believes others in the industry will not cause small problems. “I don't think the competition thinks this is critical to their success,” he said. "But from my experience with technology, I know it is happening. It will happen in 2022 and 2023."

Since cryptocurrencies are having an impact on the internet, hacking has been a major issue with cryptocurrencies as well. The Nasdaq was hacked about 10 years ago, but the basic computer market has not been hacked.

In the cryptocurrency space, money is always deducted from transactions. Earlier this month, hackers stole around $ 130 million from BadgerDAO, and users of the BitMart cryptocurrency exchange lost around $ 150 million.

As the culture of cryptocurrency is different from traditional currencies, some inconsistencies are exceptions. Take, for example, the $ 532 million NFT market that occurred this year. A lot of things like this have happened, but it doesn't happen because the buyer and seller are the same person. There is no exchange of money other than exchange rates. In other words, it is the whole bogus industry that attracts people to the NFT gold market. Maybe that's the problem?

Others, due to a typo, mistakenly sold the boring Apeman Yacht Club NFT for up to 100 times less than expected ($ 3,066 not $ 300,000). In the stock market, this can be avoided with something called a big finger scan, which is meant to prevent the stock from malfunctioning due to incorrect keystrokes.

Some expect the use of cryptocurrency technology to be stronger and lead to more errors and catch up with traditional finance or TradFi depending on the benefits of cryptocurrency.

Michael Safai, co-founder of Dexterity Capital, a venture capital firm, said, “In the past, many exchanges had many mistakes and uniqueness. "The exchange is definitely an investment in the app that it has seen over the years to complement the level of expertise TradFi has had over the years."

However, most cryptocurrencies are based on the idea of ​​non-elimination. When an exchange occurs on a blockchain, it must be an exchange. Therefore, cryptocurrencies against Bitcoin and other crypto assets should be carefully monitored. And don't hunt them down. Some digital tokens have been lost in a mess of moldy hard drives. This raises a question. If the expectations of cryptocurrency holders are too high, it could have a major impact on popularity.