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.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
