Cryptocurrency, specifically Bitcoin, continues its upward trend despite having an ongoing issue: being proclaimed the world's riskiest form of assets.
The current price of the infamous cryptocurrency, Bitcoin, had an uproaring increase again on Friday, June 11, the morning right after a banking regulator proposed to view Bitcoin, and the entire crypto market as the riskiest of all assets.
Bitcoin, also called BTC-USD, started June 11 down after falling a little over 1% with a total of $36,425. However, it began to shoot up at about 1.5%, which costs $37,306 around 8 AM.
On Wednesday, June 9, and Thursday, June 10, the cryptocurrency had a massive surge when El Salvador finally made it legal in their country to use Bitcoin as a bonafide form of money. Because of this incident, the said cryptocurrency spiked at 8% the following day.
Cryptocurrency as the Riskiest Asset
According to a report by Yahoo, the Basel Committee on Banking Supervision strongly believes that every bank should have a backup saving to cover any future losses of their cryptocurrency holdings.
The organization even proposed a public consultation regarding proposals for treating banks' exposures to various crypto markets and assets. The current plans would be expensive for banks to get a hold of digital currencies. As a result, it could stop a large-scale market acceptance of tokens.
One proposal is for banks to attack a 1,250% risk possibility of exposure to Bitcoins, and other cryptocurrencies in the crypto market.
New Crypto Regulation Commission
Yahoo also mentioned that numerous experts had expressed their concern about the crypto market. They suggest that the U.S. needs to create a new department solely to regulate cryptocurrencies because it is a severe issue covering every market and institution.
Carol Alexander, a Professor of Finance from the University of Sussex, said that the unregulated exchanges are the main reason behind excessive manipulation strategies in the crypto market.
She added that crypto is known as the Wild West of the financial world because despite U.S.' regulators' attempt to control it, all of their efforts deemed underwhelming.
Another massive cryptocurrency dwindled in the market. Etheruem, referred to as ETH-USD, is the second most significant crypto after Bitcoin. It experienced a gigantic 5% crash to trade at about $2,421.
Dogecoin, or DOGE, is one of the most famous cryptocurrencies because Elon Musk, Tesla's CEO, advertises it. It also had a 4% drop to $0.32.
Bitcoin's Legalization: One Small Step for El Salvador, One Giant Leap for Crypto Market
Although other people might see Bitcoin's legalization in El Salvador as a small step, it is indeed a massive step for the entire crypto market. This power move crowns the Central American nation as the first country in the whole world to formally accept digital currency.
Despite various organizations' attempts to discourage people from looking into the world of crypto, Bitcoin and other crypto marketers continue to progress.
This article is owned by Tech Times
Written by Fran Sanders