Regulation, But No Cooperation
Cryptocurrency is back. For the last few months, crypto has been struggling. We saw Bitcoin plateau around the 50,000 range after it hit the all-time high of 64,000, and that choppy period from March to May was a sign that cryptos might be starting to stabilize at a price. Then, bad news came, and even more bad news followed, which caused Bitcoin and other tokens to fall nearly 50 percent in a matter of weeks. Whoever bought the dip then has to get some claps, because Bitcoin sits at 50,000 once again this week. You can tell with the amount of profitable trades our Fantasy Finance users have made with cryptos like Dash, Cardano, and Ripple!
The looming risk with cryptos at the moment is regulation, but this recent run shows how quick and disruptive the industry can be. Even with large crypto firms like Binance and BitMEX dealing with real cases, no one thinks it will change for a major reason: cooperative regulation isn’t taking place. We have to remember that crypto is a global asset, not a US, Chinese, or European asset. The US has simply tried to fine crypto firms that violate investor protection clauses, while Europe is trying to set rules in place that will take time to implement. China, on the other hand, has cracked down on crypto pretty well. In fact, its regulations started the crypto correction we just talked about. However, crypto firms have fled to other safe havens such as Hong Kong, where the economy is doing very well, so there are loopholes there. If crypto can survive these regulations, it’s not hard to see it break it’s all-time high for good. What do you think about the current crypto regulations?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.