BITCOIN, CURRENT SITUATION AND FUTURE CHALLENGES

BITCOIN, CURRENT SITUATION AND FUTURE CHALLENGES

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Today the Bitcoin returns to be news, because in a matter of hours trading soared up to the $ 5.700 and accumulates a rise of more than 90%since the collapse suffered a month ago, when in a matter of days lost by 40%. With this new rebound, its rally throughout the year already reaches 480%.

Why did fall in September?

In mid-September, markets trembled before the pressure exerted by several Governments, notably those of China and Russia, against the crypto, which led to a sharp correction down, then took the price of the u$ s5.000 to u$ s3.000 .

The collapse occurred at two measures taken by the people's Bank of China. The first of these was that forced several virtual Exchange houses to close its operations in the country.

Delivered the second blow was the decision to ban the primary financing of small companies through the issue of new coins, under a procedure known as ICO (Initial Coin Offering)

In practice, this mechanism had become a form of catchment not classic of funds aimed at the possibility of launching new coins which will seek to replicate the upward movements that are showing the rest of its competitors.

But the Chinese authorities were not the only ones who took letters in the subject and they acted accordingly, since peers of the United Kingdom launched a parallel a serious warning to the consider that this type of operation has a highly speculative, that puts at risk the financial position of potential investors.

Why are upload now?

After this correction, the price not only managed to recover all lost but it also sprayed their highs, surpassing Friday 5,700 dollars. In this way, in less than a month goes up 62% and win almost 500% since the beginning of 2017.

Some analysts believe that recent movements in the market again to be linked to the giant Asian, although this time in a positive sense, because after the closure of several trading platforms speculations on the possible reopening of some grow in that country,

The data gave them the news company State Chinese Xinhua, which said that it will be to allow trade with digital assets, but with a new legislation, which would include regulations of licenses more restrictive and measures against the laundering of money that must be implemented by exchange houses.

Is Bitcoin gold of the 21st century?

The followers of the Bitcoin insist on labeling the virtual currency as 'the gold of the 21st century', but the big difference that separates him, beyond the contribution, is showing an extreme volatility, reflecting the profile clearly speculative that surrounds this type of investment.

The price of this virtual currency is worth more today than three ounces of gold, something that does not seem very rational .

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Challenges of the Bitcoin

What happens now will depend on how Governments react, one thing is to allow small transactions anonymous s with virtual currency, but another very different is that Governments allow anonymous payments on a large scale, which would complicate and much the levying of tax or to fight against the illegal activities .
The great challenge which has the Bitcoin on a medium-term is to confront the measures taken by the central banks of the countries against the Bitcoin, because that historically Governments do not allow arising out of a financial system independent of the controls of the Governments.

Thank you for your attention.

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