What Is Really Responsible For Bitcoin’s Volatility? Former CFTC Official Has an Answer For Us:
One of the many issues with Bitcoin and altcoins, in general, is its high volatility. It is especially evidenced by Bitcoin’s climb from around $1,500 to $5,000 per BTC in just a few months. Then, it decreased to $4,300 in the wake of China’s crackdown on ICOs; it went up to around $4,600 for a while before falling again even lower to $3,700 as of 24th September. This volatility is, of course, an off-putting side of investing in Bitcoin. However, former Commodity Futures and Trading Commission’s (CFTC) former financial services regulator, Bart Chilton, has claimed to find the primary factor responsible for this issue.
Chilton, who called for (then president) Barack Obama last year to regulate digital currencies in general, has claimed that wealthy Bitcoin investors are manipulating its prices to “soften” the impact China’s ICO crackdown had on said costs.
He also pointed out that, had he been in charge of regulating digital currencies he would have started investigations into why is the price swinging so wildly, warning that it takes regulation to protect investors from market manipulations.
Chilton’s speaks out
He argues that the “blind spot” he mentioned is this one, no regulating agent is investigating the reason behind the price bouncing so often and with such a big difference between daily prices.
He also considers China’s crackdown a “clarion call” for Bitcoin enthusiasts to start regulating their industry to avoid further (and tougher) regulations that would hinder innovation in the crypto market.
He continued to focus on China’s ICO regulations as a significant alarm that further actions would be taken by governments that could potentially thwart any improvement made to cryptocurrencies.
Chilton, then, urged for the industry’s investors, miners, and anyone investing either their money or their time to stop waiting for said measures taken by centralised states, and take the work of regulating their industry by themselves, improving the rate at which the issue is solved.
This is because the crypto market is decentralised. This means that any attempt to regulate it made by a particular country would only affect the said region and not have any meaningful impact on the rest of the world, other than creating a state of panic and influence Bitcoin’s volatility negatively, just like China’s measures did almost a month ago.
How to fix the issue
So, if the enthusiasts of Bitcoin all over the world take this matter into their own hands, they could start globally solving the issue.
This measure would lead to regulations that would alter the constitution of the industry itself, since they would be attacking it from its core, and on its environment: a decentralised one. Because a decentralisation-based issue must be taken care with decentralised measures to ensure they are applied and have an impact on the entire world instead of an isolated territory.
Also, since the regulation would be overseen by the people who want this industry to grow, any attempt or “fix” would be aimed at improving it, instead of any government’s try to minimize its influence over the economy. In other words, if the industry regulates itself, it would do so looking for its expansion; meanwhile, if governments create the regulation, it would be done with the objective of subduing it.
Buy and Sell Cryptocurrencies – Start Trading
>> Open Account on Recommended Website <<
Kucoin is a brand new cryptocurrency from Hong Kong. It is highly thought to do very well over the next couple of. This is one ICO coin to invest in, especially at $0.40!