What stops Bitcoin to grow in price?

Lebedev

Lebedev

Moderator
Moderator
Jun 26, 2018
153
Points
1,194
Recently there students of Cambridge university business school made a big and detailed report on regulating cryptocurrencies. Summary of their research consists in that the main aspect that stops crypto development is lack of coordination in work of governmental regulators. It affects a variety of work aspects, including even big differences in terminology and classification of digital assets.

This research, where a few world universities have taken part, they have deeply investigated regulation laws from 23 countries, these are US, Japan, European countries and Russia, because of its size ot was the first such an important research for the whole industry. Main target of it was to create instruments both analytical and practical for regulators, players of the market and other people who are interested in cryptocurrencies

We hope that the global market research on cryptocurrencies regulations we did will point out on problems of the world laws what is going to help regulators define their approach knowing about the world experience.
Written in foreword of the research

Head of cryptocurrencies and blockchain department of Cambridge center of alternative finances Michelle Rauhs thinks that this is a truly historical document for industry.

This first report of compare of crypto assets regulation as well as blockchain technology is an important analytical and practical instrument for regulators and players of the market.
Stated in the same foreword

Summaries of the research:
  • Lack of standard terminology for crypto assets between different regulators and different laws can lead to problems on international level
  • The most unclear laws could be found in countries that has lower level of financial regulations and low usage rate of cryptocurrencies. 42% of countries with high popularity of crypto, on the other hand, tried to make legal base with minimal amount of pitfalls, changing laws that already exists instead of creating new ones
  • Most of governments (82%) have completely different view on cryptocurrencies considered to be assets and other cryptocurrencies. Sequently legal status of these coins are simply assets
  • The first things regulators pay attention to is Initial Coin Offering (ICO) and crypto trading, these are types of investment that are the most similar to the classical ones. However, they pay almost no attention to other popular types of investment in crypto industry, such alternative ways of token distributions (airdrops and hard fork) as well as coins issue by mining. This lack of attention can affect legal status of the whole industry a lot
 
Coin Payments
BitStarz Casino
Advertise Here!
Best Change
Lebedev

Lebedev

Moderator
Moderator
Jun 26, 2018
153
Points
1,194
Different Regulators. Different Regulations

Research also make emphasize on that each regulator is trying to classify and control crypto very different from how another does. Even when these regulators work according to the same laws.


Central banks are often can be found as first regulators, that defines the rules every player on the market as well as other regulators should follow; this includes emission control, distribution, sell and usage of digital assets. However, in most cases the only thing done by central bank is warnings of risks and problems connected to crypto industry.

The next regulators that goes right after central bank is ministry of finance, tax office and other institutes of government.

This graph shows results of analysis of more than 40 different countries’ laws, it shows that in 40% of cases central banks more often talk about crypto. Second and the third are Government and Financial Supervisory, these are ministers of finances and other institutions.

cambridge-regulation-report-01.png


A little historical background. The first affirmation of cryptocurrencies belongs to (TRACFIN) and was done in year 2011. The second affirmation happen a year after and has taken place in European Central Bank.

But the most popular year of Bitcoin used to be year 2013, when market felt down for the first time. For 2014, 93% of countries that were in research did at least one statement of cryptocurrencies or blockchain. Back then, bitcoin was extremely popular in mass media and how it always happens, leap in price was the reason for all the world regulators to start talking about crypto, only to warn and prevent that time.

What is more, three of these countries that were first to do affiliation about crypto were first to create laws regulating the industry. These are UAE, Bermudian islands and Gibraltar.

cambridge-regulation-report-02.png
Quantity of crypto affiliations in different years.

Terminology

One of the most important aspects of the research was the question of terminology. According to what they found out lack of standardized terminology for definition and description digital assets is likely to be a huge problem for regulators. This problem often occurs in international relations, but it also happens between different regulators in the same state.

Despite the fact that blockchain industry only is at the very beginning of its path, it develops extremely fast, that's one of the reasons why regulators need so much time - they aren't used to make important decisions as fast as it's required in the industry. That way government often use terminology that's been developed quite a while ago and can't be used correctly inside crypto industry.

This might lead to a big problem, because different institutions that work according to the same law and use the same terminology could make decisions that are in contradict with each other.

cambridge-regulation-report-03.png
Evolution of terminology used by different regulation institutions.


The first affiliations about crypto industry used to be dedicated to Bitcoin and shown government being interested in distributed register technology and risks that are connected to it. This is why until year 2014 term “bitcoin” was used to describe all the cryptocurrencies. After year 2014 in official documents terms such “cryptocurrency” and “virtual currency” are becoming more spread, the most popular however, is “digital currency”.

“Virtual currency” term became popular in the year 2014 after it's been used in the first report of FATF dedicated to cryptocurrencies and their risks. This term is still used in several countries, such as USA, Canada, EU, Switzerland, Israel, Singapore and others.

Some regulators have recently started to use “cryptocurrency” as a synonymous to payment or exchange crypto tokens in order to differ them from other types of digital assets, i.e. security-tokens. As it's seen on the graph below Russia continue to use this term to describe the whole crypto ecosystem.


cambridge-regulation-report-04.png
Terms that are used by world regulators in February 2019


Classification of digital assets

It is also stated in the research that in most countries, regulators has been tryings to classify digital assets in the right way. As usual first regulators tries to find out which of these assets could be viewed as classical assets in order to create similar laws for their regulations.

Because of that some crypto assets (security-tokens) are being classified as securities, most of jurisdiction simply divide all other tokens into utility and payments. Some countries on the other hand, have created a term of hybrid tokens - tokens that have specs of different types of digital assets.
 
Kostyax

Kostyax

Member
Verified
Jul 4, 2019
7
Points
32
I think all this does not matter. After all, no one ever knew exactly the dynamics of growth and the fall of Bitcoin and this is the only rule that always works) Yes, the only thing that all experts know is that Bitcoin will grow, and then fall, and growth will fall again after the fall)
 
Kostyax

Kostyax

Member
Verified
Jul 4, 2019
7
Points
32
Facebook undoubtedly gave an impetus to the growth of Bitcoin, when they announced their cryptocurrency. Although Facebook has always been just a commercial organization.
 
Similar threads
Thread starter Title Forum Replies Date
Margo News Binance Advertises Bitcoin at London Bus Stops News 0
Lebedev What stops Cryptocurrencies Development The Hitchhiker's Guide to the Crypto Galaxy 0
Margo News Bitcoin Mining Suppliers Increase Efforts to Meet Rising Product Demand News 0
Margo News Bill Gates: Watch Out For Bitcoin, If You Have Less Money Than Elon Musk News 0
Margo News Elon Musk: Bitcoin is almost as bs as fiat money. The key word is “almost” News 1
sioux4 What is the first bitcoin account? Wallets, mining, hardware 1
tsakemy easy job to receive bitcoin funds Initial Coin Offerings (ICOs) 0
Margo News Mastercard, Twitter Show Bitcoin Interest Following Tesla News 0
Margo News Over 200 New Bitcoin Whales Appeared Since the Start of 2021 News 0
Margo News Bitcoin Rises by 20% After Elon Musk Changes His Twitter Bio to “#bitcoin” News 0
Margo News Bitcoin Drops by 11%. Further Price Falls Predicted News 0
dobryNikitos Get free Bitcoin every day Airdrops 0
Margo News Bitcoin Could Drop Unless It Hits $40K News 0
Margo News Bitcoin May Reach $200K in the Next Five Years News 0
Margo News Millennials Invest in Bitcoin, while Older Investors Trust in Gold News 0
Margo News Marcus Swanepoel: Bitcoin Could Reach $100K This Year News 0
Margo News NFL Player Russell Okung Does Not Receive Salary in Bitcoin News 0
Margo News Bitcoin Bull Run Rally Going Down News 0
Margo News Bitcoin Hits $25,000 on Christmas Eve News 0
Margo News Bitcoin is As Useless as Fiat Money — Elon Musk News 1
Margo News Bitcoin Demand to Reach $600 Billion — JPMorgan Chase News 1
Margo News Financial Giants Are Buying Bitcoin — Tyler Winklevoss News 3
Margo News Bitcoin to Hit $300K in a Year’s Time — Willy Woo News 0
alphastorm23 Stake.com - Bitcoin Casino & Sports Betting - Crypto Gambling Crypto Gambling 0
Margo News Bitcoin Hits $16K for the First Time Since 2017 News 0
Margo News Bitcoin Drops Below $15K After Joe Biden Announced US President-Elect News 0
Margo News Bitcoin Price May Exceed $16K News 1
Margo News $1B Worth of Bitcoin Moves from the Silk Road Wallet News 0
Atomicarthur Bitcoin Blackjack.fun Crypto Gambling 4
Margo News Bitcoin Launderer Alexander Vinnik Faces Up to Ten Years in Prison News 0
Margo News Terror Financing Ring Used Bitcoin Coupons to Cover Their Tracks News 0
Margo News Christie’s to Auction Part of Bitcoin-Inspired Artwork News 0
Selina Mary Will Ethereum price over take bitcoin in future? Coins 0
Margo News Just Eat’s France Subsidiary is Now Accepting Bitcoin News 0
Selina Mary CryptoTab Review: Is CryptoTab a safe browser to earn bitcoin money? Wallets, mining, hardware 0
Margo News Peter Schiff: “I was right on gold, but wrong on Bitcoin” News 0
jack2019 Buy Ready BitCoin Doubler Website Just in 60$. Commercial Section 0
Margo News Bitcoin Inventor Uses Single PC to Mine 1.1M Bitcoin News 0
Margo News Edward Snowden Was Paid $35K to Discuss Bitcoin News 0
Margo News Empire Market Turnes Out to be Scam, $30 Million in Bitcoin Stolen News 0
Margo News Two Vendors Charged with Trafficking Bitcoin-purchased Drugs News 0
Margo News Bitcoin is an Old, Tired, Worthless Coin — John McAfee News 1
Margo News High-Profile Twitter Accounts Hacked in Bitcoin Scam News 0
Margo News Scammers Steal $24 Worth of Bitcoin in the First Half-year News 1
Margo News Australians Can Now Buy Bitcoin at Post Offices News 0
Margo News Bitcoin Skeptics to Go All-in on Bitcoin — Max Keiser News 0
Margo News Nassim Taleb: Most Investors Don’t Understand Bitcoin News 1
Margo News Why Bitcoin Dropped by 6% on Thursday News 0
Margo News Australia: Coke Vending Machines Now Accept Bitcoin News 0
Margo News John McAfee Dismisses His Earlier Prediction of Bitcoin Price News 2

Similar threads

Private conversations
Rules Help Users
    You haven't joined any rooms.
    Forgot your password?