The market analytics continue reporting new Bitcoin records today, the cryptocurrency reached $11,700. Last week it was not clear what could cause the move higher, but over the weekend Bitcoin would break the psychological barrier of $11,000, and now the infamous cryptocurrency is flirting with the $12,000 mark.
The talk of Bitcoin being in a “market bubble” continues hijacking investors attention, however, the main point to discuss what would happen to all those people who invested money into Bitcoin if it collapsed. Obviously, they would lose money, but it’s more interesting to examine the effect on the global economy of this revolutionary monetary system.
Sunday’s record high for bitcoin came as Venezuelan President Nicolas Maduro announced the launch of the “petro”- a new cryptocurrency backed by oil reserves. Then the new regulations are being introduced by the governments of the UK and the EU. Amid concerns that Bitcoin is being used for money laundering and tax evasion, many governments are making plans to end the anonymity that Bitcoin provides.
The regulations being proposed would force any websites that accept Bitcoin to report any suspicious transactions. These new rules, also being considered by the UK and expected to come into effect in the first months of 2018.
This article is provided as a third party analysis and does not constitute any financial advice, which can only be provided by a certified financial adviser.