Regulating Bitcoin

For investors, but not really patriotic

By Darryl Weng

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Bitcoin seems to be flying high at this moment. With the only ugly news being that the U.S government wishes to regulate it, Bitcoin’s investors are exuberant, at least their actions reveal such emotions. For the past several days, after China’s decision to end cryptocurrency transactions, Bitcoin has recovered and leapt past $47k. From now till 2024, when the interest rates will climb drastically, cryptocurrency may well be where the money’s at.

For those who wonder if cryptocurrency should be part of their investing portfolio or if any cryptocurrency holdings should be sold quite soon, this article could not possibly address such questions. However, at this point of time, what matters is liquidity. Since the stock market is so volatile and impossible to predict at the moment, liquidity is what one needs to counter the unpredictable stock market. Assuming that you, the reader, is passionate about investing in cryptocurrency, please allow this article to enlighten yourself on what could possibly happen if the U.S government were to place restrictions on cryptocurrency, especially Bitcoin.

First off, the U.S government most likely intends to regulate cryptocurrency as a method to increase control over cryptocurrency transactions. This is essentially a boon for cryptocurrency prices. At this point, you might be asking: why would that be? It’s quite simple, actually. Obviously, the U.S government is not going to brand itself as a government that wishes to decrease its citizens’ freedoms. Instead, the U.S government will likely introduce its regulations as an aid for investors’ and cryptocurrency users’ safety. By doing so, it may be assumed that cryptocurrency stocks may drastically increase, due to an increased use of cryptocurrencies. If regulations were proved successful, companies may use cryptocurrency as a form of transaction. Therefore, the usage of cryptocurrency would be widespread and, in turn, pushing cryptocurrency stocks upwards. Whether or not the U.S government regulates cryptocurrency, the relative growth of cryptocurrency stocks will be positive. However, as long as the U.S government does not take any actions or fails to regulate cryptocurrency properly, massive fluctuations in cryptocurrency prices will be the result.

As of now, cryptocurrency prices are not the most predictable and are definitely volatile. Once the U.S government sets up regulations upon cryptocurrency, we may see steady growth in cryptocurrency. At the cost of our freedom, that is.