Perhaps there is some truth to Mahatma Gandhi’s quote in relation to the e-currency market. First they ignore you, then they laugh at you, then they fight you, then you win.
Since the release of Bitcoin in 2009 the trading markets have changed dramatically. At the very beginning, it did not get much attention. Some even found it flat out ridiculous. Now nine years later countries like South Korea and China are trying to implement regulations on e-currencies. Even Luxembourg's Finance Minister Pierre Gramegna has suggested that the European Union could issue new cryptocurrency regulations.
Bitcoin, Ripple, Ethereum and other major cryptocurrencies have plummeted throughout January 2018, ever since reports of a ban on cryptocurrency trading first started circulating. The price of bitcoin was seen to recover slightly Monday, trading 0.39 % higher on CoinDesk at $13,671.55 a coin.
China and Bitcoin
Known for their highly technical skills and with a population of around 1.404 billion, it is not surprising that China is home to the world’s biggest community of Bitcoin miners. Mining Bitcoin uses a lot of electricity and China has a lower power cost plus local chip making factories and cheaper labour then in the western world.
China has put up various bans, and after some confusion on what would happen in South Korea, a spokesperson for the South Korea President, Moon Jae-in, announced on the 15 of January that there will not be a ban on any cryptocurrency trading.
The digital currencies provide a way to move money out of China, potentially adding to economic losses which officials have aggressively set about restricting.
It may seem like China is working against all cryptocurrencies, but The People’s Bank of China has in fact been running trials of their own cryptocurrency. Their version comes with more regulated transactions.
The Metropolitan Bank stops trading crypto currencies
The effects of Chinese regulations are not just in China, they have also affected Chinese related businesses in other places around the world.
The US based Metropolitan Bank have up until now been one of the fastest growing banks in the US, due to their trading of cryptocurrencies. However the bank ceased all international crypto-related wire transfers on Thursday.
The Metropolitan Bank has, with its Chairman Arthur V. Ty, been known for its openness towards cryptocurrency trading. Within the Bitcoin community it was known as the Bitcoin Bank.
Should we be afraid?
The cryptocurrency market has been acting dramatically this past year, but we need not to be afraid says the CCO of BitPay Sonny Singh. “Every time there is good news and bad news, the market tends to overreact” said Singh to Bloomberg Technology. He went on to explain that right now we are seeing an overreaction on the downward side.
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