KARACHI: Bitcoin values rode on another roller coaster this past year: soaring, dropping, and then cycling again. This price move trend frequently stems from spot market manipulations by option sellers (primarily institutional traders) to drive the spot price closer to the strike price at which the maximum number of outstanding options contracts expire worthlessly.
Bitcoin, the most popular digital asset has plummeted around 30 percent over the last five weeks after achieving a record high of about $69,000 in early November. News that the central banks across the world are pondering tighter monetary policy has impacted risk appetite over the previous several weeks.
Governments throughout the globe have been looking at embracing, regulating, and even banning cryptocurrencies since the introduction of Bitcoin. Even then, the crypto ecosystem has been a rocket ship voyage to the moon and back. Today, it appears like more individuals than ever have climbed on for the trip.
A major movement toward digital platforms across all businesses has also been noticed as a consequence of the epidemic. Political leaders around have followed suit by adopting moves to drive their economy in the same direction.
One of the most recent instances is El Salvador, which made news by becoming the first government to use Bitcoin as legal cash, a decision that has subsequently been opposed by its inhabitants.
In the first statement, the country’s president openly tied crypto as a rival to remittances, adding this would raise the amount of money low-income families in El Salvador get via remittances by the “equivalent of billions of dollars every year.”
Digital currencies are clearly an added component, and crypto will most likely have an influence in the years to come. But it will take time, and there are significant hurdles to mainstream acceptance and substituting cash for the millions of people that continue to depend on it.
Cryptocurrency transfers presently are not a cheaper, quicker or simpler option than cash, especially given the challenges of transferring crypto to/from local currencies.
Many nations have yet to acknowledge or offer legal avenues for cryptocurrency trading/payments, including the United States.
Although well-known people and celebrities such as Jack Dorsey, creator of Twitter, and Elon Musk, founder of Tesla, have spoken out in support of the usage of the new monetary technology, cryptocurrencies continue to split perspectives.
Their extreme volatility makes them a highly risky investment; that there is no authority means that no one guarantees the investment, and the fact that they are used to conduct unlawful transactions and cybercrime has given them a negative name.
Meanwhile, Binance has been issued in-principle permission by the Central Bank of Bahrain. This is permission to enable the cryptocurrency exchange to operate as a crypto asset service provider in the nation.
As to CoinTelegraph, if the Kingdom of Bahrain completely accepts the application, it would be the first regulatory permission for a Binance business in the Middle East and North Africa area.
Forbes said that Binance was also approved in Canada and this was directly revealed by Zhao via social media. He claimed that a distinct business of Binance has been registered with the Financial Transactions and Reports Analysis Centre of Canada, the region’s financial intelligence body.