Cryptocurrency
The possibility of another state-run cryptocurrency undermines the acceptance of the Bitcoin. This is all on the back of the Petro coin, which instigated the idea that a state-run cryptocurrency could work well. Remember, that Petro is basically a commodity backed coin and Venezuela could certainly do that. Similarly, Iran holds a lot of oil, so it would make sense for the country to adopt the same framework. But in order to make their coin more popular, the regulators would have to adopt a tougher stance towards other cryptocurrencies.
Yesterday’s announcement by Russian finance minister; the country has no objections if private investors would create Russian cryptocurrency opened the door for private investors to introduce their coins under the regulatory environment. So what we have is two clear industries propping up; countries looking to introduce their own currency which could be bak by commodities and private individuals introducing their coins under the government regulation.
We knew that the ICO market wasn’t going to stay in its current format for long and the regulatory environment is making things difficult for scammers.
Going back to Bitcoin, we think this may be another pullback however the break of this month’s low could change the game. However, in a market with so much price manipulation and asymmetrical information, it is sometimes hard to see the real reasons behind these market moves.
