A recent article by New Money Review delves into the complex world of cryptocurrency data collection and analysis, featuring several interesting interviews with experts in the field.
Following 2018’s ongoing bear market, the crypto data analysis industry is one of few in the space that remains profitable, with many companies still hiring new staff. It would appear that in these troublesome times, the need for accurate forecasting is more pertinent than ever. However, the difficulties of gathering relevant data within an unregulated and chaotic market do not go unaddressed.
Some of the comments from those involved highlight the often-times immature nature of the cryptocurrency industry and the many hurdles that are holding back development. The lack of market data structure is pointed out by CryptoComposite technical lead Mark Griffiths. When compared with traditional financial markets it’s “unregulated chaos”, he says.
“The whole space is full of religious wars, vendettas and many, many tribes.”
The problem of unregulated exchanges
He goes on to point out the controversial topic of inflated volume that many crypto exchanges are believed to be guilty of. In order to try and normalize data, Kaiko’s Ambre Soubiran says the company provides “millisecond-level precision” on trading pairs from over 100 exchanges from around the world.
When you take into consideration mitigating factors such as the increasing number of hard forks and the fact that new cryptocurrency exchanges are being created almost weekly, you can see how keeping up with the industry is a never-ending job.
Last November’s Bitcoin Cash hard fork is one such example. During that time, two competing factions caused havoc across the cryptocurrency space, attacking each other’s blockchains and shredding millions of the crypto market value.
“There was a full cyberwar raging,” says Griffiths.
So is regulation a benefit or barrier?
The topic of cryptocurrency regulation is as controversial and divided as it gets. Hardline traditionalists believe regulation goes against the very core values of Satoshi Nakamoto’s Bitcoin whitepaper, while many traders and investors see it as necessary to safeguard their capital.
Widespread adoption is often considered key to further cementing cryptocurrency into mainstream culture, but at present that seems unlikely without better protection for consumers. However, crypto day traders who profit largely off the industry’s high volatility would likely lose out to the calm brought by increased regulation.
One thing is for sure though – if big names in the cryptocurrency “wild west” can’t learn to work together, the industry is at risk of being hijacked by those who can.
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