Bitcoin may have had a tough September, but it appears to be turning a corner and is demonstrating its resilience in the face of obstacles.
That’s according to Germany’s public international broadcaster. In a report from DW, experts are claiming that the digital currency may be in for a ‘sustained record run as it overcomes key obstacles.’
Last month, Chinese regulators cracked down on the market in addition to critics such as Jamie Dimon, CEO of JPMorgan, calling bitcoin ‘a fraud‘ and that it’s ‘worth nothing.’ Yet, despite these set backs, that saw bitcoin’s price drop below $3,000, it has rallied back.
Jonathan Gérardin, IT manager at Wavestone, a consulting firm, said:
Bitcoin has been able to overcome that and continue to progress, it has shown its resilience.
To date, the cryptocurrency’s price has been within touching distance of reaching $6,000, making its market value bigger than Goldman Sachs at one point. Yet, while the market appears to be moving in the right direction, DW questions whether this period of uncertainty is over.
According to Kenneth Rogoff, professor of economics and public policy at Harvard University, while governments are allowing the sector to grow he thinks that digital currencies will eventually be regulated.
Japan is one example of where this could happen. In April, the country made changes to its legislation acknowledging cryptocurrencies such as bitcoin as a legal form of payment. However, Rogoff believes Japanese authorities could change those laws due to money laundering risks.
Governments cannot and will not tolerate large-scale anonymous transactions indefinitely through any virtual currency.
Instead, he thinks that governments will issue their own digital currencies.
Russia is one country that is considering its own national cryptocurrency. On Monday it was reported that Vladimir Putin, Russia’s president, had called for a state-issued digital currency, called the CryptoRuble. This comes at a time when Putin has said that the market poses ‘significant risks‘ and that Russia will regulate the mining and supply of cryptocurrencies.
Dubai has also revealed that it will be developing its own blockchain-based cryptocurrency, called emCash.
Where to Now?
With reports circulating that China will resume digital currency trading by licensing bitcoin exchanges, it’s possible the the currency’s value could rise to new heights. For now, all we can do is wait and see where the market heads to next.
Featured image from Shutterstock.
Last modified: March 4, 2021 5:00 PM