Sunday was a good day for bitcoin as it experienced a significant increase as investors regain their confidence and the tightening of bans fades away.
At the beginning of Sunday morning, bitcoin prices rose to $11.533 which is an increase of about $500.
Cryptocurrency pundits are debating over the statement from governor of the Bank of England, Mark Carney who last week referred to cryptocurrencies and bitcoin as a “failure” and a gambling.
He explained that cryptocurrencies possess all the traits of a bubble which only catches the attention of the unwise.
According to Carney, cryptocurrency prices have showed signs of a possible bubble which includes paradigm clarification, widening retail interest and fluctuating prices that depend on having the attention of the unwise.
Furthermore, crypto-assets are presently coming up with various threats concerning the security of buyers and investors, crime rate, fraudulent activities, tax evasion and the circumvention of capital controls and global laws.
Threading on the similar stance, Kevin Murcko, CEO of cryptocurrency exchange CoinMetro also was on the same page with Mr. Carney but less strict saying there is definitely a need for regulations.
He explained that it is believed that cryptocurrencies should go in line with the regulations with traditional fiat currencies particularly with active trading.
He added “The core content of Carney’s speech, which although highly negative and damning, does call for further regulation. This shows us that a legal financial framework for the crypto space is quickly becoming a reality.”
To create stability in the market, strong regulations need to be out in place backed by the support of leading institutions. Investors can get to benefit for this in the long run. For any currency to survive, it needs strong regulations and security.
Murcko went on saying “This is something that cryptocurrencies have struggled with due to the unregulated and costly infrastructure that currently supports their issuing, holding and trading. The current volatility that we’ve witnessed across the crypto markets is in large part caused by a lack of regulation and uniformity in how these are traded.”
“What’s important is that central banks don’t snuff out the crypto industry. Contrary to what some believe, it is only in its infancy, and will only continue to grow.”