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.
By 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.
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.