Bitcoin’s recent performance has been heady. There have been the highs and there have been the excruciating lows. Yes, cryptocurrencies are not exactly known for their proclivity to behave and follow the laws of finances.
If anything, they quite clearly defy them. From the moment, the digital gold chunks made their appearance they proclaimed themselves stateless and beyond the reach of any regulator.
In the most recent news now, Bitcoin got a blow yesterday, 6 February, when the cryptocurrency got hit to under $6,100. Today, it seems to have buoyed up and reach $8,000.
But the rise of Bitcoin did not go unnoticed and soon other tokens started to perk up. Overall 100 various altcoins have shot to glory.
In a 24% upswing, Bitcoin now floats around $8,200 – not too shabby a performance following the rather disappoint hit it had taken previous.
Altcoins have also been climbing up the ladder at a steady and reassuring pace. All the flagship ones have done great as a result of Bitcoins pick up. Bitcoin Cash, Ethereum, ETH have all hit around 30% up today.
As of now, all cryptocurrencies account for $388 billion, an overall decent sum.
There’s been a lot of regulatory talk in recent years. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) did hold hearings regarding Bitcoin and the future of Blockchain technologies as a whole.
Both events have turned out alright, and no immediate plans have made for the restricting in trade of cryptocurrencies. Of course, a variety of countries have already been working on a legislative framework concerning cryptocurrencies.
Russia careful approach to the digital chunks of gold may have alarmed some in the country, seeing that oligarchs are just trying to get their hands on some hot money, while others are rather supportive of the move.
But now the tide seems to be turning and cryptocurrencies have a rather bright future ahead of them. Or put this way, some may wane while others will soar.
It is not surprising that the flagship currencies are under heavy hits. To be perfectly honest, some of the main crypto assets, such as Bitcoin has already been linked to illicit activities which makes it an increasingly difficult job to defend them and present them as a tenable currency.
Not only that, but prominent people from the world of finance have ventured to call these currencies fraud. J.P. Morgan CEO Jamie Dimon has been among the people to chime in and offer a negative account of Bitcoin in particular.
Warren Buffet, the godfather, of finance, has also said that cryptocurrencies will come to no good end. We are rather disinclined to believe, but we’d be fool not heed Mrrs Dimon and Buffet’s advice.
If crypto assets indeed reach a tragic end it would not be entirely the fault of criminals who give them bad press. The realities here are that people are inclined to embrace and invest in those devices and central banks ought to know better and try to propose regulatory measures.
However, by venturing out to ponder cryptocurrencies in the context of regulation, central banks are indeed sanctioning and validating these dodgy financial instruments.
A compromise is now sorely needed. As more people invest fiat currencies in digital goods, it would be unwise not to put in place some safety nets to prevent people from losing billions of US dollars.
Local regulation helps. Japan and South Korea are two highly monitored markets. Even China’s downright belligerence is not to be readily thrown out. China may be hawkish, but it is well-considered in its uprooting of dodgy financial practices, despite what it track record of freedom of speech and Internet freedom may suggest.
Whatever the future of cryptocurrencies would be, it would not end with a bang.