Governments to Regulate Virtual Currencies

Just a week before Christmas, the price of bitcoin and other virtual currencies began to decline. The New York Times today reported that the price of bitcoin had fallen below $10,000 for the first time since it surpassed that mark. This decline has been propelled by the concerns that the government is contemplating about carrying a crackdown on the industry. By declining to $10,000, this means that the price had reduced by more than 50 percent in a period of less than a month. The current price of the bitcoin has been suggested by a company known as Blockchain Info. For starters, this is a data site and a news site that has been closely following the performance of virtual currency. Bitcoin is not the only virtual currency that has been affected. Other virtual currencies have also suffered the same fate. One such currency is Ripple which according to virtual currency experts came second in terms of valuation after bitcoin.

As for Ripple, the virtual currency had lost nearly two-thirds of the initial value one month ago. Because of the nature of the situation, online posts have appeared of desperate virtual currency investors who want to commit suicide. The situation is even worse for the people who bought the virtual currency using debt especially when the price of the virtual currency was high. However, as for the people who purchased bitcoin late last year, they are still on the safe side. As a matter of fact, there is one user in Reddit who wrote a post on the platform detailing how he was regretting the decision to invest in the virtual currency. Not only did he invest alone but he also managed to convince other family members to invest in the boom. He further says that the family members are now accusing him of persuading them to invest in a scam. They could not listen to the argument that the decline was normal and everything would return to normal. On the other hand, this is seen as a platform for virtual currencies skeptics to express their vindication. The Times learned that this pessimism is attributed to the reasoning that several governments have discussed regulating the virtual currency trade. One such government is the South Korean government which has said that they are thinking about shutting down virtual currency trading Korea. Regulators in America have also described the trade as a Ponzi scheme meant to defraud Americans.

About Erica Smith 261 Articles
With several years in the medical field—both as a practitioner and an administrator—Erica has a unique perspective on the health industries. From medical technology to cancer research, she covers our health industry.

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