In a report that recently came out, China has announced that they are going to put restrictions on Bitcoin and other cryptocurrency options. There are many people who are trying to create alternative investing options to Bitcoin. However, none of these options have the staying power that Bitcoin has.
An ICO is an initial coin offering. This is where people raise money to help with the development of their currency. The problem is that many of these currency options are worthless. This is hurting the people who invest in the coins. The Chinese government wanted to put a stop to these ICO’s as soon as possible. Once the news of this change in policy came out, the value of Bitcoin dropped over ten percent.
Rapid Price Increase
The price of Bitcoin has increased dramatically during 2017. This has been great for people who bought into cryptocurrency options early on. However, this has also created a false sense of security for investors in this industry. Warren Buffett is warning investors that this is a major bubble. The Chinese government feels like this is a bubble as well. This is one of the reasons why they are tweaking their policies to help the people who live there.
Demand for New Options
With the rising demand for new options in this market, it will be interesting to see the future of the cryptocurrency market. There are many astute financial managers who do not know how to invest in these coins. Some people believe that the value is going to continue going up in the years ahead. Other people feel like it is obvious we are in an asset bubble.
Investors need to conduct thorough research before investing money. There are many cases of the value falling rapidly without warning. Some governments around the world are not as trusting of Bitcoin as others. The future of cryptocurrency options in China is bleak after the latest announcement.
With all of the potential of Bitcoin, the future is still bright. However, investors need to be ready for more volatility in the years ahead as governments continue to make decisions in this market.
Dil Bole Oberoi
