Bitcoin's price dropped below $10K after South Korea announced plans to ban trade on cryptocurrency exchanges and a central banker in China said the country should ban centralized trading of digital currencies.
There's more talk of a cryptocurrency crackdown in South Korea and China and whispers a world away have investors bailing on Bitcoin. Bitcoin fell almost 19% in less than 24 hours it's now down almost 50 percent just since December.
Less well known crypto currencies fell even further the carnage even hits stocks that had soared after they added blockchain to their names. All because a South Korean government official said a ban on crypto currencies is very much on the table and a Chinese central banker says the country should ban the centralized trading of digital currencies.
So who can answer what comes next?
I think people even close to the industry have no idea well a lot of folks in the industry have just been saying this is going to be a volatile ride with Bitcoin but what we really like from a technology perspective is blockchain the underlying technology platform. Bitcoin is just one example of a service that can be developed along that but what blockchain is going to enable us to do as individuals have an extremely secure platform to control all of our own personal data. Right now if you think about it we shop on Amazon they get to keep our credit card information or Google or Facebook or whoever, the blockchain environment will enable us as individuals to be in control of our data and be able to apply it across other applications.
So as I said lots in the news about Bitcoin we don't think that's the story we think it's blockchain which really is going to be a game changer as it proves out over time.
For some of us, our perspective is blockchain is great but there's tons of people are jumping onto this Bitcoin bandwagon and depending when they got in they might be getting burned right now.
Well and I think there's been lots written all the way along that this is volatile it's a high risk investment you've got to take a look at it. I don't think it should be surprising that with the growth that it's had that you're seeing major countries stepping in saying we want to regulate this we want to protect this in the case of China they simply don't like being on the end of having to bail out their citizens every time their citizens decide to gamble on something which i think is a lot of what's underlying their decision to step into that similarly with South Korea.
But why is everything falling apart because of South Korea's banning Bitcoin?
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That well it turns out they are some of the biggest investors in Bitcoin very very active in this market and you know this idea that they would ban it is basically rippling through everyone to say this is clearly a very dangerous current type of currency but is that kind of surprising that people didn't realize that before they go with it?
It's high risk ,I mean it is a question of how it's being used as well there's a lot of "you know" sentiment that perhaps it's you know illegal proceeds that are being traded. Other sentiments are if you're living in a country where there's not a stability in the banking system, you want something that's an international platform that is secure. So there I think there's still just so much noise around this at the moment it's not surprising to see the highs and lows I was reading some coverage today suggestion there's another potential 50% drop in this oh boy so hang on and be prepared.
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