Governments are still Skeptical about Cryptocurrencies
The notion that Bitcoin threatens governments and financial institutions has been around as long as Bitcoin was first introduced. However, these mere hypothetical ideas and theories had started to seem a lot more real when Bitcoin managed to go from zero to $64,800 per coin. Many financial analysts believe that Bitcoin is a major cause for ramping up the devaluation of the USD.
CoinShares CSO Meltem Demirors recently took to Twitter to give voice to many who believe the same. Demirors claimed in her tweet that the organized attacks on cryptocurrencies by the federal institutions would become more aggressive in the upcoming months. A brief overview of the recent regulatory activities in many countries adds some degree of truth to these warnings.
After El Salvador announced that it would start accepting Bitcoin as a legal tender, the news was taken as a threat to many countries in the American peninsula that were looking to regulate virtual assets more tightly. Secretary Victoria Nuland’s visit was looked upon as an attempt to prevent President Nayib Bukele from proceeding with the crypto transformation.
On the other hand, China, the second most powerful country in the world, has also imposed a blanket ban on crypto mining in many provinces. Many private banking institutions in the United Kingdom have already blocked their consumers from dealing with any crypto exchange platforms. Such examples are countless. All of these regulatory reforms are called out by Demirors, who compared them with feudalism in the 21st century.
Bitcoin has not been able to move above $35K in a while. This is not a mere coincidence. The frequent rhetorical and bashful tweets by the Tesla CEO have wreaked havoc in the Bitcoin markets. Veteran investors like Warren Buffet are yet to come around to the idea of blockchain technology itself. Hedge fund manager Ray Dalio claimed a few months ago that a stringent federal crackdown on cryptocurrencies is highly anticipated.
On the other hand, the newly appointed US Secretary Jennet Yellen issued abrasive remarks about the massive carbon footprint generated by Bitcoin. All of these statements have greatly affected Bitcoin price movement and prevented the beacon coin from getting a six-figure evaluation. Notably, SEC has been delaying the matter of Bitcoin ETF approval without making any clear comments on the matter.