Jasmine
VIP Contributor
Do you know why crypto market has crashed? There are two reasons: one, high inflation rate, two, Macro Fear. It all started with President Joe Biden’s “Executive Order on Ensuring Responsible Development of Digital Assets,” in March, Russia’s invasion in Ukraine, the current rise in the interest rate, and fall in the stock market.
Governments around the world have always have been hard on cryptocurrencies. Do you know why?
Anonymity
Crypto transactions are recorded on the bockchain but the transaction does now show the sender and receiver. When someone sends Bitcoin, he can do it anonymously. Government cannot track who sent funds to whom. Therefore, government believes that crypto will be used for illegal transaction and money laundering.
Decentralization
For governments, decentralization is also the major danger associate with cryptocurrencies. Decentralization will stop government’s financial monopoly. It also poses a great market risk, that’s why the value of crypto currencies fluctuates too much. For instance, in November last year, Bitcoin was $69,000, currently, it is $28,000.
Governments around the world have always have been hard on cryptocurrencies. Do you know why?
Anonymity
Crypto transactions are recorded on the bockchain but the transaction does now show the sender and receiver. When someone sends Bitcoin, he can do it anonymously. Government cannot track who sent funds to whom. Therefore, government believes that crypto will be used for illegal transaction and money laundering.
Decentralization
For governments, decentralization is also the major danger associate with cryptocurrencies. Decentralization will stop government’s financial monopoly. It also poses a great market risk, that’s why the value of crypto currencies fluctuates too much. For instance, in November last year, Bitcoin was $69,000, currently, it is $28,000.