The astonishing growth in Bitcoin (BTC) price over the last year has given the coin much attention. But ironically, the majority of this attention has been negative, where notable experts have entirely rejected the new form of money on various grounds.
Trader mania has been consistently been knocked by experts who question investing in blockchain backed cryptocurrencies. Their concerns have led to serious market jolts; warnings and bearish predictions were incremental in the decline of more than half the value of the coin, in the last month alone.
Why Are Notable Experts Harsh on Cryptocurrencies?
Cryptocurrency prices had a significant setback last month when the South Korean government announced a crackdown on domestic exchanges, amid money laundering and tax evasion charges. This news has sparked worldwide attention towards the anonymous transactions and illegal activities through digital currencies, and the regulators sat up.
Popular fund managers kept themselves away from trading bitcoin and other cryptocurrencies. Instead, they warned followers to stay away from this fraud.
In mid-September, JP Morgan boss Jamie Dimon called Bitcoin a fraud, and he had predicted bitcoin bubble to burst ultimately, saying; “These virtual currencies are best for people who are involved in illegal activities.”
Cryptocurrency mania also failed to impress Warren Buffett. The billionaire investor and financial magnate said he would never invest in Bitcoin. In an interview with CNBC, he said with almost certainty that cryptocurrencies will come to a bad end.
The World Bank Group President and ECB policymakers added to the bear’s case. Both key players stressed the need for regulating cryptocurrencies; calling them a risk to global financial stability.
So With All This Negative Press, Why Have Prices Bounced Back?
Though Bitcoin, Ethereum (ETH), Ripple (XRP) and the majority of digital currencies are down over 50% from their all-time high, bulls have been holding the market forcefully over the last two days. They claim regulatory actions are a positive step for long-term growth. Bitcoin and other digital currencies have effectively pared their losses that were generated at the beginning of the week. Currently, the cryptocurrency markets are in the range-bound state, while bulls and bears are watching regulators to set future strategies.
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