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Crypto markets shocked by surprise crisis prediction as price of bitcoin and ethereum swings wildly

A frightening 2023 warning has Bitcoin, Ethereum, and other significant cryptocurrencies in turmoil right now.

The world’s largest asset management forecasts “the next generation for markets,” but the governor of India’s central bank has warned that the extremely volatile cryptocurrency market may trigger the next financial catastrophe if action isn’t taken to stop it.

After skyrocketing past the closely followed threshold yesterday, the price of one bitcoin has since fallen back under $17,000. While other significant cryptocurrencies are preparing for a price earthquake of $65 billion, the price of Ethereum has printed a similar pattern.

The Reserve Governor stated, “Our opinion is that it should be prohibited because, if you try to control it and let it flourish, please mark my words, private cryptocurrencies will be the source of the next financial disaster. According to Coindesk, Shaktikanta Das, the Bank of India, spoke at a conference.

However, it is difficult to outlaw cryptocurrency, and China is still the 10th-largest market for adoption, up from 13th in 2021, according to Chainalysis’ Global Crypto Adoption Index for 2022. Behind Vietnam, the Philippines, and Ukraine, India came in fourth place.

China took action to forcibly outlaw bitcoin, ethereum, and other cryptocurrencies in the summer of 2021, expelling those responsible for maintaining crypto-blockchains in exchange for newly created ones, a practise known as mining.

Bitcoin, ethereum, and other cryptocurrencies, according to Das, have no intrinsic value. They pose significant inherent hazards to the stability of our economy and financial system. I haven’t heard a convincing defence of the public good or the function it provides yet.

While lawmakers and regulators have increased their oversight of the technology, the collapse of the Bitcoin, Ethereum, and crypto markets over the past year has led to grave concerns about the future of some of the biggest companies in the sector.

Others have also expressed concern that bitcoin and other cryptocurrencies could be the catalyst for a significant worldwide financial disaster. The Bank of England’s deputy governor for financial stability had previously warned that cryptocurrencies could lead to a global financial collapse unless strict new regulations were put in place. Last year, Viktor Shvets, managing director of Macquarie, told Bloomberg that the next financial crisis may be brought on by the mania for cryptocurrencies. A commissioner from the US Commodity Futures Trading Commission warned in October that growing interest in cryptocurrencies from some of the biggest Wall Street corporations will heighten financial stability risk and maybe even approach systemic risk levels.

India is investigating the creation of an electronic rupee or digital rupee, a central bank digital currency (CBDC) that is supported by the government and inspired by cryptocurrencies. India has been in the vanguard of the digital revolution in the current century, and you will see in the days to come that more and more central banks will adopt digital currencies, said Das.

India started taxing cryptocurrencies earlier this year, charging a 30% income tax and a 1% transaction fee. As a result, Binance CEO Changpeng “CZ” Zhao described India as a hostile climate in a discussion with Tech Crunch last month. The Reserve Bank’s caution and anxiety caused some people to withdraw from the cryptocurrency market, according to Das, who said he was “glad” to warn people not to invest in bitcoin or other cryptocurrencies over the summer.

News Summary:

  • Crypto markets shocked by surprise crisis prediction as price of bitcoin and ethereum swings wildly
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