The loss of Bitcoin's value is not an isolated or temporary event, but is already serious. After the collapse of the cryptocurrency market, now different regulations and the weight of the big banks, leave a dark future to a virtual currency that was more profitable weeks ago than gold itself.
Bitcoin came to be worth $19,500 on December 17 with gurus who even predicted that it would reach $300,000 in coming years. Now, only a month and a half later, the value of Bitcoin is around $8,000. Anyone who has recently invested in Bitcoin has not stopped losing money.
And from today onwards, there is a new setback: the main U. S. banks are beginning to ban the purchase of cryptocurrencies with their credit cards, a logical and expected measure. JP Morgan Chase, Bank of America and Citigroup have somewhat halted their operations to purchase cryptocurrencies with their credit cards. This ban on buying Bitcoin with credit cards could be extended to other regions of the world.
JP Morgan begins today with its ban "since they don't want any risks associated with the transactions," Bloomberg says. While Bank of America began yesterday Friday to reject this type of operations applying to "all personal and commercial credit cards". And late yesterday, Citigroup also confirmed that it will halt the purchase of cryptocurrencies on its credit cards as it "continues to review its policy as the market evolves".
Buying Bitcoin by credit card will be very complicated in the near future, and it is not known how long this measure will last. Buying coins with a credit card is risky for lenders, who don't know if they will be able to get the money back. There is also a risk that thieves will abuse stolen credit cards by losing themselves in cryptoccurrencies transactions that are almost untraceable. There is also an agreement to combat money laundering in this multi-billion dollar market.
Bitcoin's recent downturn has come about because of strong threats from regulators around the world, fears of price manipulation such as that suffered in December and Facebook's ban on using its advertising system to advertise on cryptocurrencies. Other countries have expressed concerns about such circumstances. China and South Korea have long since banned the launch of new virtual currencies and closed exchangers operating from there.
Not only has Bitcoin been in continuous decline for weeks, but other cryptocurrencies such as Ethereum and Ripple have experienced a 20% decline in recent hours, with a slight upward correction.
Source: computerhoy.com
Yikesss
Very good
Ups and downs.
Banks limiting their clients freedom to ourchase reinforce the crypto message there shiuld not be intermediary or centralized power that dictates what’s right or wrong.
I don’t think that bank thinks avout their client but only their own interests.
In the credit card model, banks wish late payers, they make crazy interests in any money loan that way. Banning the purchase of crypto assets is long part of a bigger strategy scheme to protect their power.