As the most popular form of cryptocurrency, some financial experts complain that it remains too volatile and has ties to cybercrime. As a result, murky world of bitcoin are now rising for increased regulation of the virtual cash.
Advocates, however, suggest the reason is a fear of the unknown, and loss of control. Last year, the value of bitcoin spiked. 20,000, leading industry veterans to warn it was a bubble. On Friday, boss of the Bank of England, Mark Carney, said in a scathing speech during the Scottish Economics Conference that cryptocurrency was “failing. The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system.
Being part of the financial system brings enormous privileges, but with them great responsibilities. The most fundamental reason to be sceptical about the longer term value of cryptocurrencies is that it is not clear the extent to which they will ever become effective media of exchange. Currently, no major high street or online retailer accepts bitcoin as payment in the U. He said the fixed supply of bitcoin resulted in “speculative mania. The speech came 24 hours after the Wall Street Journal reported, citing a number of anonymous sources, that the U. The decentralized and currently unregulated nature of the beast means cryptocurrency trades circumvent the banking industry.