Crypto currency has seen the wildest swings and the steepest decline in the past few weeks. The question is why? Before we answer that question, let's see who is for and who is against crypto?
For:
- Switzerland
- Japan
- Trump
- Britain
Against:
- China (banning it)
- India (taxing it)
- France (more regulations)
- USA (but Trump)
- Germany (more regulations)
- South Korea (more regulations)
According to an article that just came out today: "Bitcoin Laundering Less Than One Percent of All Transactions", so why were and still are so many news on crypto currency being the vehicle of money laundering?
Another question is why is China banning crypto currency if 80% of all mining comes from China and crypto currency could potentially displaced the US dollar as the world reserve currency? China has always been criticizing the fact that US dollar, acting as the world reserve currency, gives US an unfair advantage, then why is China banning a potential substitute?
The answers are many-fold:
the rich and powerful do NOT want to see the transfer of wealth to occur and if they can, they will not let it happen.
As for China, if the financial system or "financial structure" is disrupted, there is a potential risk for social unrest. Imagine everyone in China could suddenly print their own money, how should the Communist Party effectively govern the country? The Party governs, like many, through control. As a result, it's easier to govern has the social fabric not changed in a major way: the poor should be kept poor and the rich should continue to be rich - any change is an unforeseeable risk.
As for other countries, who want more regulations, the answer is straightforward: they want a bigger piece of the crypto pie.
Please comment. Thanks.