Bitcoin Investments Are Still Going Strong Despite Sanctions From Russia And China
This is definitely the year of cryptocurrency, with Bitcoin investment taking the lead, followed closely behind by Ethereum, Litecoin, Ripple, Zcash, Monero and other virtual currencies bringing their total market cap to over $150 billion. Without further ado, let’s recount some of the changes that have occurred in the crypto space today.
In the last 24 hours, bitcoin trading volume has registered a negligible drop by 0.08% while Ethereum, Ripple, Bitcoin Cash, Litecoin, Dash, and NEM have both seen their trading volumes increase by 0.60%, 3.64%, 4.08%, 0.90%, 2.49%, and 7.43% respectively. Bitcoin, Ethereum, and Ripple seem to have enjoyed a seven-day increase in their sales volume by 11.25%, 1.41%, and 27.41% respectively. From these figures, it’s obvious that Ripple has fared well for the previous seven days. Albeit being a start-up, Ripple has emerged as a strong contender with over $15 billion in reserves and a customer base of over 100 clients. The currency boasts of facilitating payments for large corporations like Standard Chartered, Santander, Spains BBVA, UBS, UniCredit and Mexico’s Cuallix. The company reported that Cuallix was the first institution to have used their currency, xRapid to facilitate payments across the US-border. Currently, the currency is marketing at over $0.26 per XRP. Bitcoin price, on the other hand, seems to be running out of steam in its pursuit to hits its all-time best record of $5000. For once, Bitcoin made a big leap in early September from around $3000 to $5000. Unfortunately, China’s announcement to withdraw from the sphere saw the price crumble down to around $3400 per coin. Thanks to increased trading in South Korea, Japan, and Hong Kong, the currency sprung back to above $4000 in a matter of weeks. On Tuesday, Bitcoin selling at $4874. While Bitcoin’s proponents forecast its price surging to $10,000 in six months, Kenneth Rogoff, an economics professor at Harvard University and once IMF’s chief economist warns that the price of this highly favored currency will eventually collapse. Therefore, many hedge fund managers are asking is Bitcoin worth investing in at this stage. Rogoff, while praising the technology behind Bitcoin asserted that government agencies cannot allow an alternative currency to rule indefinitely. Russia and China, for instance, seem to be the main governments fighting virtual money. China already banned all transactions involving cryptocurrencies in September. Yesterday, Russia announced its intention to put some restrictions on all virtual currency exchange spots within its boundaries. While addressing a press conference in Moscow, the first deputy of the Russian Central Bank, Sergei Shvetsov described all cryptocurrencies as “Dubious.” Russia’s President, on the other hand, praised and bashed bitcoin investments at the same time. He acknowledged that these currencies are becoming a reliable mode of online payment but warned against “significant” risks. Putin also added that he is fully aware of the position taken by the Central Bank of Russia against virtual currencies. Nevertheless, Russia’s move will only have a slight impact on virtual currencies as its market share very low. Russia’s history regarding its legal position on virtual currencies is a rather tumultuous one. They seem to keep oscillating between encouraging and disrupting the currency. In 2014, there Central Bank warned that anyone found using Virtual money will be prosecuted for going against article 27 that restricts the use of alternative currency. In the recent months, the country has shown a soft spot for virtual currencies by endorsing the introduction of cryptocurrency education as one of the financial literacy strategies as well as providing subsidies to large bitcoin mining operations. Anyway, most financial experts and futurists believe that blockchain is an efficient, self-regulating technology and that governments and other intermediaries cannot regulate it even if they want to.