The notification at the top of my phone reads,
“Bitcoin drops below $10,000 with $30 billion of value wiped off in a day as cryptocurrency sell-off deepens”
And I knew I have to write about this and let you all know what’s coming.
The global trend of investing in Cryptocurrencies has faced a sudden boom in 2017. The concept of cryptocurrency that began with Bitcoin founded by Satoshi Nakamoto now has over 3000 new type of cryptocurrencies going around. Some of the top ones are Litecoin, Ether, Monero, Ripple and Dogecoin. Like any other asset, the fall and rise in these cryptocurrencies make them a risky investment.
As their value began increasing at an exponential rate, more and more people have become aware of the methods to make a little extra from their hard earned money. However, now governments worldwide have recognized this sudden upsurge as a threat to their economy and as a whole, the world economy. Here are some of the recent bans on Bitcoin (source: http://bitcoinbans.com/)
- Officials of the People’s Republic of China announced in 2017 that the country will use their own digital currency. Bitcoin is thus rapidly depreciating as it is likely that the use of digital currencies such as Bitcoin will be banned in the country and that the official digital currency developed by China’s Central Bank will be used.
- The Latin American nation of Colombia has declared Bitcoin illegal. By doing so, the country has included itself into a list of handful nations that have taken such a step.
- The Central Bank of Nigeria (CBN) on Tuesday, January 17, has passed a circular to inform all Nigerian banks that all transaction in bitcoin and other virtual currencies have been banned in Nigeria.
- Just days after a Hong Kong tycoon was kidnapped, beaten, and held for millions of dollars in Bitcoin in ransom by criminals, the Financial Supervisory Commission (FSC) Chairman of Taiwan, Tseng Ming-Chung, has made a ruling. Bitcoin is now illegal in Taiwan.
The Crypto-bubble is about to burst and it’s time that investments made are reduced. The world’s largest cryptocurrency was trading at $9,199.59 and it saw a decline of 19% in the next 24 hours. Such a plunge was last seen on November 30, 2017, and since then it has been gradually decreasing. Be aware!