Bitcoin has been on an unstoppable march northward for the past few months. The first cryptocurrency by market cap managed to break above $42,000 in its most solid attempt yet at reclaiming new highs since May’s crash.
Bitcoin, the world’s most popular cryptocurrency and a decentralized digital currency has been receiving attacks from all over. Especially in recent months with China and America going head to head on it. It seems that these countries cannot agree about anything but Bitcoin is an exception which they seem to be attacking equally.
The bullish momentum has held for the past week, BTC’s price records a 24% profit in this period with the fear and greed index on greed side after months of being at extreme fear (Tapiero). Dan Tapiero, founder and CEO of 10T Holdings noted that achieving this rally was hard work as there were many factors contributing negative sentiment towards Bitcoin like Chinese government banning ICO campaigns or American politicians calling cryptocurrencies.
Even the most traditional financial institutions have expressed animosity towards Bitcoin. Following El Salvador’s declaration of legal tender status for cryptocurrency, The International Monetary Fund warned other countries that “Bitcoin is not suitable as a means to pay or store value.”
The Central American country was negotiating with international banks about monetary aid when they announced their decision in August 2018. In an official blog post on IMF’s website, it explained how this measure could severely affect stability and cause serious economic problems by outlining three ways.
The IMF and the financial institutions appear to be on edge. The country that follows in the footstep of El Salvador is adopting a currency, but according to the IMF this money can also fund terrorism or evade taxes.
Bitcoin Won The Week, But Someone Might Be Planning A Coup
Bitcoin has been on a steady climb over the past year, but its narrative landscape is changing. China banned Bitcoin mining and put pressure to stop crypto-related activities with their financial network in an attempt to curb corruption. Experts speculate that Chinese leaders could be trying to prevent capital from exiting the country or clear space for their new central bank digital currency (CBDC). Either way, this leaves many companies who invested heavily into BTC feeling uneasy about whether it will keep them protected against inflation as promised.
BTC is one of the great inventions in recent decades. It’s a math and science that can be difficult for most people to understand, especially when it challenges what society has come to know as reality. The US should embrace new technology rather than fear it because this will lead only failure and decay.
With the U.S.’s increasing regulation of Bitcoin and crypto, two bills are stirring debate in both Congress as well as within cryptocurrency communities: Representative Don Beyer’s (D) The Digital Asset Market Structure and Investor Protection Act; which would create a regulatory framework for digital assets like bitcoin by defining them “as securities”; while the bipartisan Infrastructure bill is designed to develop America’s infrastructure using blockchain technology.
In what has been called one of their worst weeks since 2017 Satoshi Nakamoto introduced his white paper on Bitcoin into cyberspace 12 years ago, it seems that Americans might be getting some incredibly bad news about cryptocurrencies- at least from an American perspective.