With Russia’s invasion of Ukraine wreaking havoc on global markets, driving up oil prices, and inflation reaching levels not seen in decades, it is critical to understand how digital currencies such as Bitcoin and Ethereum are faring in the current financial climate.
Additionally, it is worth noting the continuing debate between governments and financial institutions over whether cryptocurrencies should be restricted and what reasonable long-term price objectives should be established for the aforementioned assets.
Kevin O’Leary of Shark Tank said in an interview with Kitco News that outlawing Bitcoin and other cryptocurrencies was no longer an existential danger.
“There is no possibility that we would outlaw Bitcoin or anything else that bears economic potential in terms of building new financial services and payment systems,” O’Leary told Kitco Editor-in-Chief Michelle Makori.
A hedge fund manager is not ruling out the possibility of a ban
In contrast to O’Leary’s perspective, hedge fund manager Roy Niederhoffer, founder of R. G. Niederhoffer Capital Management, said that he is not ruling out a prohibition.
The cryptocurrency industry recaptures $2 trillion in market capitalization as Bitcoin climbs beyond $44,800.
Niederhoffer reminded investors that at one point in time, even gold was illegal to hold in the United States.
“There is a possibility that Bitcoin may be prohibited. Numerous governments, including the United States, have prohibited individual possession of gold. However, if that were to happen, the resulting climate of turmoil and hyperinflation would make Bitcoin much more valuable. If they do decide to prohibit it, now is the time to stock up on Bitcoin.”
Both panelists agreed that regulation of the cryptocurrency market was inevitable, but predicted a tremendous surge in response.
O’Leary asserts: “Once this rule is in place, the institutions will pump billions of dollars into the system.” Speculators will gain from the fact that they will be indexed, which will provide a significant upside.”
Bitcoin is now trading at $44,410, down 0.26 percent on the day but up 6.33 percent in the previous week, according to CoinMarketCap statistics.
Also Read: Coinbase To Monitor Canadian Transactions Worth More Than 1,000 CAD
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