Bitcoin Has Value
Financial regulators in the United States have rejected the hypothesis that Bitcoin is backed by nothing.
The United States Securities and Exchange Commission, SEC (Securities and Exchange Commission), and the CFTC (Commodity Futures Trading Commission) recognized the fundamental value underlying the Bitcoin cryptocurrency. This happened during a hearing in the U.S. Senate on regulation of the cryptocurrency market. In particular, the idea was expressed that Bitcoin's value is derived from the costs borne by miners (people who obtain Bitcoin with the help of mathematical calculations performed by CPUs and GPUs). At the same time, financial regulators stated that Bitcoin can be considered simultaneously as a payment method, a means of accumulation and preservation of value, and a speculative instrument.
What the leaders say
For his part, SEC Chairman Jay Clayton emphasized that his department is not considering the prospect of a ban on cryptocurrency transactions. On the contrary, in his opinion, this market needs support for development, and federal oversight should promote innovation while providing investor protection. CFTC Chairman J. Christopher Giancarlo, referring to the risks associated with the volatility of crypto currencies and manipulation of their prices, recalled the presence of similar phenomena in other markets (stocks, commodities, financial derivatives, etc.). In addition, Giancarlo mentioned his children, who are actively interested in cryptocurrencies and prefer the crypto market more than the regular stock exchange. Previously, Jay Clayton stated the need for separate regulation of the ICO (Initial Coin Offering) sphere, because in most cases project tokens are essentially securities with features of shares. And J. Christopher Giancarlo noted that regulation of the digital currency industry must be carried out carefully, without hindering or harming innovative technologies.
Conclusion:
Bitcoin is being recognized more and more worldwide thanks to its amazing growth in the previous year, and the fact that it is being discussed by regulators tells us that Bitcoin may become an asset that will attract more investors in 2018 as well.
Source: forklog.com
Translated from the Romanian original with AI assistance.