Despite bitcoin has plunged below $10,000, almost halving in value from its peak price near $20,000 in late December, it is undeniable that alternative currencies are gaining attention against fiat currencies. However, as reported by Flossbach von Storch they all lack one characteristic absolutely necessary for money to have value over the long term: its existence as a commodity that has intrinsic value or can be changed into one that does.
Liu Xiao via Caixin |Initial coin offering (ICO), an increasingly popular crowdfunding phenomenon in which new cryptocurrencies make their debut, continues to make headlines. But this time it’s about the swift and broad crackdown of the sector in China.
The People’s Bank of China (PBoC) issued last week a statement banning ICOs, while also planning to shut down local cryptocurrency exchanges. In order to combat capital flight, money laundering and other fraudulent activities, Chinese authorities have decided to disallow trading between fiat currencies and digital currencies within China. This has led to prices of cryptocurrencies such as bitcoin sliding over the weekend.