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Hello to my friends who love life and keep smiling despite all kinds of negativity. In this article, I want to tell you why governments don't want cryptocurrencies. Some experts attribute it to the volatility of cryptocurrencies and some experts to states that they do not want to give up control. What is the real problem…?
Let's start …
Bank of Japan Governor Haruhiko Kuroda stated that cryptocurrencies are “volatile” and “speculative”. He explained that he keeps stablecoins separate, stablecoins will be useful payment tools in the future.
Bank of England Governor Andrew Bailey said he was "sceptical" to cryptocurrencies and that cryptocurrencies were "dangerous".
Fed Chairman Jerome Powell stated that cryptocurrencies are “speculative tools.”
After each statement, there was a decrease in the bitcoin and cryptocurrency markets. The aim is to drive ordinary investors away from these markets.
About two months ago, statements similar to the above started to multiply. And there will be more to come…
Why is that … ?
We need to go back a little.
Monthly Data
In the previous cryptocurrency bull rally, the total market cap had risen to $ 761 billion. In the bull rally we are in, the total market capitalization rose to $2.6 Trillion. There was an increase of about X3. The seriousness of the market called bubble was understood.
The blockage of the current financial system made it possible to turn to alternative investment instruments. Sample; You cannot physically buy gold purchased through financial institutions. Why is that … ? Because they sell it to you for nothing.
Due to Covid-19, many states have provided financial assistance to their citizens. Most of the people invest in cryptocurrencies instead of their current financial instruments.
States have understood blockchain technology and its product cryptocurrencies late. While creating its own central bank digital currency (CBDC), it wants to ban existing ones. Because they think that they will not be preferred.
Financial firms started to invest in cryptocurrencies, especially bitcoin and Ethereum, to protect themselves against inflation.
For all these reasons, states realized that the new economic system would be based on blockchain technology and its product, cryptocurrencies. He counterattacked to check it out. Because they are currently trying to ban and suppress it because they cannot control it.
Sample; The Chinese state has banned the mining of bitcoin and other cryptocurrencies in its country in preparation for its own digital currency.
States are using existing blockchains to create a central bank digital currency (CBDC). States do not have the technical knowledge and skills to build their own blockchain network. They want to use existing blockchains. Sample; The Ukrainian government has chosen the Stellar (XLM) network as a platform to create a central bank digital currency (CBDC). There are many such states.
Blockchain technology and its product cryptocurrencies are the financial system of the future. The faster the states adapt to this, the more they get ahead.
What to do;
To train and support human resources on blockchain technology
Develop their own blockchain (for their own digital currencies and systems)
To prevent volatile; The proliferation of cryptocurrency funds called ETFs
Most importantly, the removal of regulations
My friends, blockchain technology and product cryptocurrencies will come. Adapting to this technology will offer you very good opportunities.
As I always say, listen to everyone, decide for yourself...
Buy when everyone is selling, sell when everyone is buying...
I'm looking forward to your comments. Thanks to your comments, we can shape my next articles together. Let's stay in touch... Take care of yourself so that you and the people around you will be happy...
