Bitcoin spoofing and US DOJ investigation
With Bitcoin taking another hit today, prices continue to fall with no clear end insight. The announcement that the department of justice in the United States of America has opened a case looking into illegal tactics in how people were trading Bitcoin will continue to hurt the over all price and fall that we are currently seeing in Bitcoin. However it will also help Bitcoin in the future that no one will attempt to replicat the actions that we have already seen.
Spoofing is by definition "a technique that has been used in traditional financial markets to affect price movements by making large volumes of fake orders." It was these fake orders that I believe lead those to think the demand for cryptocurrencies was much higher then it truly was which in turn brought in uneducated members of society hoping to get in on the action while not realizing the true reason for these numbers. If we can rid ourself of these types of influence it will help cryptocurrencies to become a true reflection of usage among true believers of what they stand for.
We must remember that cryptocurriences are a relatively new field even though they feel like they have been around for quite a while. Due to the lack of government regulation it has made the crypto field a version of the Wild West where everyone is trying to get rich. While this is all fine and dandy we must remember there will be a cost to do so, and have a moral line that we say we won't cross such as those that used the spoofing technique. Because we all should want to make money but do it honestly and offer to help those that are new as well, rather then taking adavantage of them!
Inclosing I want to leave you with a one last thought and a question. With the government stepping to help protect those involved with cryptocurriences I think we will see brighter days ahead for all crypto with less corruption. However when is too much government regulation? How much do we need or want them to step into our world? I'd love to hear your opinions!