One reason people are selling out of bitcoin is because governments are moving against cryptocurrencies.
The promise of bitcoin is that it’s anonymous and secure and the government can’t touch it. That promise is unfulfilled.
Governments are not going to stand idly by while people replace or abandon fiat currency.
That’s why cryptocurrencies will always be weak credit tokens compared to cash — governments may be annoying but they aren’t stupid.
The total market cap of all cryptocurrencies, including bitcoin, stood at $531 billion just before the weekend, down from $830 billion at it’s peak. That’s a drop of about 36% in less than a month — a collapse that qualifies as a market crash.
People are casting around for an explanation. Why should this wildly popular new form of payment exchange, which feels like the future, suddenly drop in value? There are a large number of good reasons to sell bitcoin. And that’s part of the problem — on most days it feels like there are more reasons to sell than to buy.
But the most obvious headwind comes from governments.
Russia, South Korea, China, Algeria, Bolivia, Ecuador, Nepal, and Kyrgyzstan have all outright banned bitcoin or made noises about tightening regulation around crypto …read more
Source:: Businessinsider – Technology