Bitcoin again refutes the warnings about «bursting the bubble»

8 APR 2018 Michael Hartnett (Michael Hartnett), chief investment strategist at Bank of America, warned
investors that the recent fluctuations in the price of bitcoin is similar to the behavior of other financial bubbles, including the stock market crash of 1929 and the end of the Tulip fever of the 18th century. In all these cases, the markets have been a powerful price surge before the crash.

Analysts at Barclays also said that the bitcoin bubble has exploded, according to Bloomberg. They note that the only reason the price of bitcoin actually went up in December of last year — the fervor. Managing Director Barclays Joseph abate (Joseph Abate), said:

«We believe that the time of speculation in the cryptocurrency investment, as the peak price of cryptocurrency, has passed.»

Since the increase in the price of 19,000 dollars in December 2017, the value of bitcoin is largely reduced, and in the last two weeks kept below 7 000 dollars. However, yesterday the price rebounded sharply by more than 1 000 dollars and is now stuck above $8000. According to experts, the decline in prices in recent months has been the increased attention of regulators to the cryptocurrency, not the fact that the market is close to collapse.

Regulatory pressure

The Commission on securities and exchange Commission (SEC) repeatedly and ruthlessly dealt with different ICO. However, to the credit of the Commission, the majority of these projects have been fraudulent, but that does not diminish the regulatory burden on industry from the Agency in March of this year it became known that the SEC has begun
to large-scale verification projects-the organizers of the ICO.

In addition, IRS has also begun to pursue cryptocurrency investors recently, the Agency has created a group
to investigate violations in the sphere of cryptocurrency. The service has repeatedly warned that cryptocurrency investors are required to pay income taxes.

Recently Twitter, Google and Facebook banned the cryptocurrency is subject that, most likely, also has occurred from-for pressure regulators of the company.

Amid these events, the SEC Chairman Jay Clayton (Jay Clayton) said that the regulation will actually be a boon to unregulated and opaque market of virtual currencies. Clayton noted that the displacement of fraudsters ultimately will benefit the growing industry, freeing it from unwanted elements that create a bad reputation for the industry.

«If we can’t stop scammers, there is a serious risk that the regulatory pendulum — regulatory actions — will be so strong that it will limit the ability of this new industry,» said Clayton during a speech at Princeton University on 5 April this year.

The message of the CBOE to the SEC

Despite the fierce arguments, the SEC has demonstrated its confidence in the future of the stock market, revealing information about the processing of applications
two bitcoin ETF — Bitcoin ETF and ProShares ProShares Short Bitcoin ETF for listing on NYSE Arca.

Soon after, the President of exchange CBOE Chris Concannon (Chris Concannon) wrote
in the SEC letter, which practically begged the Commission to allow cryptocurrency ETP. Concannon, said that the market for virtual currencies is growing and continues to stimulate the interest of investors and consumers.

«With its innovative functions as a digital asset, bitcoin has gained wide acceptance as a secure medium of exchange in the commercial market and has generated considerable interest among investors,» wrote Concannon.

But so says not only Concannon – pay attention to experienced investors and entrepreneurs. For example, Mike Novogratz (Mike Novogratz) — a former partner at Goldman Sachs, who left wall street to start
the first commercial cryptocurrency Bank.

Billionaire, Chanpen Zhao (Changpeng Zhao), who founded Binance, one of the largest cryptocurrency exchanges in the world, no doubt that digital currency is not going anywhere. «I am convinced 100% that cryptocurrency is the future,» said
Zhao.

He echoed the brothers Winklevoss – the cryptocurrency on their exchange, Gemini has recently been added
«block transactions» outside of the stock glass for large traders. Brothers predict that bitcoin will ever become «multitrillion asset», and that skeptics suffer from «lack of imagination».

Apparently, Zhao and the Winklevosses well versed in the cryptocurrency industry. In February, Forbes first published
a rating of the cryptocurrency billionaires. Zhao was in third place with a fortune of 1.1 billion dollars, and the Winklevosses in fourth with approximately $ 900 million.

So, that would not have claimed skeptics cryptocurrency, bitcoin less resembles a bubble and all the evidence suggests that there is a future for cryptocurrencies.

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