Last week, the Central Bank of Russia Federation, Russia’s apex bank proposed banning the use of and mining of cryptocurrencies in the country citing a number of reasons for its proposal including threats to financial stability, the country’s monetary policy sovereignty, the wellbeing of citizens, etc.
Following the announcement last week Thursday, Bitcoin has been plummeting. The cryptocurrency has about half of its value removed from a November high of $68,053.34. A report published by Russia’s apex bank last week Thursday mentioned that cryptocurrencies rapid growth is hugely dependent on speculative demand and that they exhibited characteristics of a financial pyramid causing them to be super volatile, making them a threat to the citizens and the nation. The proposal is pushing for quite a number of things including stopping financial institutions from dealing in cryptocurrencies in any way, developing systems that barricade the purchase and sale of cryptocurrencies, stopping crypto exchanges from working in the country, etc.
Bitcoin has reached an all-time high record of $69,000 and quite a number of predictions say that the coin would surpass the milestone this year.
Ethereum’s network coin, Ether, also plunged almost 10 percent and is currently trading below $2,400. Investors are bothered about the latest trend with cryptocurrencies, especially as the Federal Reserve interest-rate increases is on the way.
Bitcoin, and other cryptocurrencies, have received backlash and will continue to do so especially from governments. Bitcoin’s troubles started with China and last year was quite a tough year for the cryptocurrency. Now Russia is another major country about to call it quits with Bitcoin. In other countries where cryptocurrencies are allowed to thrive, there is the problem of government regulation.
For instance, investors are afraid that regulators in the US will continue to crack down on cryptocurrencies.
As of the time of this writing, the world’s largest cryptocurrency Bitcoin was trading at $33906.90, while the second-largest cryptocurrency Ether was trading at $2,260.55.