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Leading Economist Warns Of A Crackdown On Crypto

Samantha Mitchell

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Crackdown on Cryptocurrency

Nobel Prize award-winning economist Joseph Stiglitz has warned that Bitcoin, which is one of the leading Cryptocurrencies, is likely to face a crackdown. Over the past couple of weeks, Bitcoin has taken a hit, of course alongside other Cryptocurrencies like Ethereum and Ripple.

The fluctuating price of this virtual currency has mainly been contributed by fears over crackdowns by various governments.

As a way of curbing the money-laundering menace, Economist Joseph Stiglitz also urged that Bitcoin should be regulated. He describes the dollar as the best medium of exchange that people should willingly trade in.

Although he seems to support the idea of moving towards the electronic mechanism of payment, he cites that it can be done without having to use Bitcoin. Mr. Joseph Stiglitz, an acclaimed world economist who received the Nobel Memorial Prize in Economic Science, said that the reason why he wants Bitcoin to be regulated is to bring an end to its engagement with money laundering.

Regulatin BitcoinBy regulating the abuses associated with this Cryptocurrency, there would be no demand for it, and it will definitely cease to exist. According to Stiglitz, Bitcoin mainly exists because of its abuses.

Bitcoin witnessed its highest value just before Christmas when it hit its greatest price of just under $20,000. From there, the price of this major Cryptocurrency has come down and currently sits at $11,142.86, which translates to about 7,985.48 Euros.

By Tuesday, 23rd 2018, another major Cryptocurrency, Ethereum saw a rise of 1% and currently sit at 1,013.52. The price of another leading Cryptocurrency, Ripple’s XRP has also seen an increase of 3.41% to $1.38.

Throughout the year 2017, the demand for Bitcoin has made its price to soar, and this has pushed other cryptos like Ethereum and Ripple to enjoy the benefits of this craze. Bobby Lee who is the BTCC co-founder had earlier predicted that the price of Bitcoin could hit $1 million in the next 20 years. This still remains a fact to be proved.

Ethereum Rise

The sharp decline that has been experienced by Bitcoin and other cryptos in January 2018 is not something extraordinary. It has been largely affected by the actions of South East Asian residents who have been selling off their Cryptocurrencies to obtain enough money for use during the lunar year. This is according to Gavin Brown who is a lecturer at the Manchester Metropolitan University. Since China and South Korea are two countries that have seen great adoption in this Cryptocurrency, they must have contributed to the sharp decline currently experienced.

History Repeats Itself

But it is not the first time this Cryptocurrency is experiencing a sharp decline in a month like January. It can be remembered that the currency rose by just 0.51% in 2017, while a decrease of 27.3% and 12.7% were witnessed in 2015 and 2016 respectively.

According to Mr. Brown, the fall of value that is currently witnessed by this major Cryptocurrency will not last for long. His sentiments are supported by eToro’s Iqbal Gandham, who is in agreement that the virtual currency’s January slump is nothing but just a short-term blip.

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A Sudden Boom In The Cryptocurrency Market

Samantha Mitchell

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Bitocin Price Boom

Bitcoin, which is the largest Cryptocurrency in terms of market cap, has risen in its values since a market free fall period that was witnessed at the beginning of this year. This came after a financial regulator’s vote was undertaken in South Korea, and which later helped in quenching some of the strict stances it had earlier taken on the operations of these virtual coins.

No More Clampdowns

According to reliable reports, Financial Supervisory Service of South Korea through its governor, Choe Heung-Sik, has finally stated that the national government will still support virtual currencies trading, but if only done in the best manner. The sudden boom in the prices of Cryptocurrencies, especially Bitcoin could be attributed to the news that Bitcoin’s crackdown could be made easy.

Early Tuesday morning, {20th February 2018}, Bitcoin knocked a 3-week high of 9, 513.23 Euros. This was quite high based on what has been going on in the market for the past few weeks. This came with almost a 100% rise from the low of just 4,804.26 Euros that was seen at the beginning of February.

Revived Confidence

According to the Managing Director of UFX, an online brokerage firm, Dennis de Jong, the latest news could have granted new confidence to the traders and make them invest again in this market. He went ahead to note that the possible crackdown on exchange trading and the huge regulation threat has for a long time interfered with the operations of this virtual currency.

The latest reports from South Korea have, however, given the traders a new reason to purchase Bitcoin, and even other crypto coins.

Still on the stark increment, Canaccord Genuity, which is an investment service firm, also had something to say. The company said that the price history of Bitcoin has always given a hint that long periods of great consolidation are always followed by long periods of great advancements.

According to this company, buying and holding them for long terms is the only secure means of gaining from the serious appreciation of the Bitcoin price. This is due to the fact that timing it might prove to be an impossibility.

7-day Report

Just within the last seven days, the value of this world’s most used cryptocurrency, Bitcoin has gone up by almost 20.49%. This is what has skyrocketed the current virtual currency’s value to $11,135. The increase in value in the last one week has not only been witnessed by Bitcoin, other sector leaders like Litecoin, Ethereum, and Bitcoin Cash have also witnessed the same. Bitcoin Cash, which is currently valued at $1,391.43, was at $98.70 in the last one week. On the other hand, Ethereum, which is at $896.13 at the moment has a seen a 0.3% rise in the past one week. Litecoin is currently at $224.60 having moved from $199.21, which it had in the last seven days.

In a report made at the beginning of this year, the government of South Korea had exclusively revealed that it was planning to all the exchange centers for virtual currencies.

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Head of Cryptocurrency Regulation Passes on

Samantha Mitchell

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South Korean Head of Cryptocurrency found dead

The head of a team that was meant to oversee Bitcoin regulation has on Tuesday 20th February been found dead at his home in Seoul, South Korea.

A Possible Case of Heart Attack

Mr. Jung Li-joon, who until his death headed the South Korea’s Economic Policy Coordination Office is said to have suffered a heart attack. Although the heart attack is said to have happened on Saturday night, his family learned of his condition the following day when they went to wake him up. The real cause of this mysterious death remains unknown until a coroner’s office report is presented to the police for further investigation.

Just towards the end of 2017, Jung Li-joon was given a new role in leading the planned clampdown that on the virtual currency. Barely a month ago, the government of South Korea brought in several measures that were meant to regulate some of the commonly used virtual currencies like Bitcoin, Ethereum, and Ripple. With the hope of lowering the suspected criminal acts that had allegedly characterized the operations of Bitcoin, the South Korean government opted to implement a crackdown on anonymous trading.

The main work of the late Mr. Jung was to bring together all the opinions from various state offices and ministries, concerning the regulation of the virtual currencies.

Effects on the Value of Bitcoin

In the month of January 2018, a sudden drop in the value of this largest cryptocurrency was felt. This is suspected to have been caused by the effects of regulating the digital coins that had been introduced in certain countries like South Korea. The value of the original digital currency went up to $19,535.70, which translates to 13991.86 Euros. That was on the 17th of December 2017, before it would come down $10,035, about 7,064 Euros on the 30th of January 2018.

Mr. Jung’s Earlier Announcements

In a move that appeared very controversial, the late Jung Li-joon stated that the government of South Korea had plans of closing all the virtual currencies exchanges that the country had. He supported the proposed closing of cryptocurrency exchanges that had been announced earlier by the country’s Justice Minister. He said that it was a measure that was aimed at dealing with the speculation in the whole market. In the lasts months of 2017, the leaders from South Korea said that they would undertake an extended period of consideration over some of the threats that this currency might have had on the market. In their statements, they had described the cryptocurrencies, especially Bitcoin as a threat to national economic stability.

According to the close associates of Mr. Jung, stress is one of the things that might have caused his sudden demise. It can be remembered that South Korea was one of the first countries that had opted to regulate the virtual currency. Ensuring that such an activity worked was definitely a heavy load for Jung Li-join who headed the team. This might have given him too much stress and contributing to his mysterious death.

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Huge Bitcoin Flaws Solved by Wall Street

Samantha Mitchell

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Bitcoin Wall Street

According to a top-ranking economics scholar, Wall Street might have finally managed to solve one of the huge problems that have been faced by the largest cryptocurrency, Bitcoin.

Bitcoin Futures is the Solution

While responding to the earlier claims that Bitcoin’s volatility could at the end, bring huge losses in the market; Professor Panos Mourdoukoutas termed that as a thing of the past. The last price fall by Bitcoin has made a section of market traders worry about the financial losses that might be felt should the currency go further down against the dollar.

The economics scholar who also doubles up as the Chair for the New York-based LIU Post Department of Economics said that by introducing Bitcoin Futures, Wall Street has stepped in to solve this problem once and for all.

Futures is a common term in the financial market, especially with the virtual currencies. It refers to an agreement to either buy or sell a particular commodity on a particular future time or date at a price that is already set. Such agreements, in regard to Bitcoin futures, are mainly dependent on the price of Bitcoin. They are also partially based on the some of the bets that speculators might think would be Bitcoin’s price in the near future.

Bitcoin Futures works a bit differently as they enable the investors to speculate on the cryptocurrency’s price without having to actually own it.

Spot Market Loses to be Taken to the Futures Market

The professor went ahead to lash out at some of the traders who have been worried about suffering huge financial losses in this market. He specifically mentioned Dunkin’ Donuts, and Starbucks and advised them to check out Bitcoin Futures.

He went ahead to clarify that any loss made in the spot market would also be repeated in the Futures market. He said that the reason why certain organizations have been talking about this virtual currency is that they are aware of the impact it will create when finally accepted as an official payment option.

Most of these companies have young consumers who adore Bitcoin, and accepting it as a payment method will definitely bring a buzz.

Bitcoin Being Discussed Everywhere

The remarks by Prof. Panos Mourdoukoutas have been made when close to 25 firms have discussed Bitcoin just within one month alone. According to data provided by FactSet analysis, 24 organizations to be specific have referred to this virtual coin in some of the conference calls that they have had.

The name of Starbucks Executive Chair, Howard Schultz appears on the list of those who have discussed Bitcoin. According to him, Bitcoin would not be a currency anytime in the future or even at present. But he had a different view on the blockchain technology. He said that in the next twenty years, this technology is set to become a central technology that will be used by various companies across the globe. He said that the reason he brought up these facts was that they always have the interest of their company and the future consumer behaviors at heart.

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