A positive regulatory action (Crackdown) on Cryptocurrencies is plotted by China and to this, Elon Musk is of the saying that its next to impossible for the governments in eradicating cryptocurrencies. Although a warning was given by him regarding the growth prospects for Bitcoin and other matching digital currencies which could be damaged by government.
As per to the news given by CNBC in a tech event in California, they firmly mentioned that its not at all possible for government to lower down its advancement. In addition to this information quoted for Musk; Musk quoted “Do Nothing” with response to the question put up in relation with wether US government should regulate cryptocurrency market?
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Musk’s View On Beijing’s Crackdown
Beijing’s regulatory action against cryptocurrency led Musk to give his views on the same that, the country might have taken this action due to it’s electricity generation issues. Also the reason behind this action lies on the fact that most parts of China are having shortage of electricity. Musk also added that major portion of South China at present is having random power cut issues as the demand of power is higher than it is being estimated.
Crypto Mining could also be one such issue as per Musk as mining also consumes lots of power. Although it could be challenging for Chinese government at top levels cause of the decentralised nature of cryptocurrencies, as according to Musk Cryptocurrency is basically focused on reduction of power of a government which is centralised.
Bitcoin’s Downfall
Bitcoins were purchased by Telsa owner Musk of value $1.5 billion in the start of this year, which gradually increased in value to around $2.5 billion as in second quarter its value increased. While due to various misadventures, value of Bitcoin and various other cryptocurrencies lowered. Musk was also a role model for Bitcoin and had major involvement with cryptocurrency as it is clear with his enormous Twitter posts. Although it was accepted by Musk that every problem can’t be solved through trading with digital currencies.
Despite Musk was the face of Bitcoin and Dogecoin and had major role in increasing its value, making it popular amongst the investors. But as mentioned above with time and due to certain misunderstandings related with cryptocurrency, as most noticeable one being having no regulatory framework, this put many investors in doubt they they were at risk with trading in Cryptocurrency due to the same reason. With passage of time and with looking at the benefits attached with trading in Crypto took value of Bitcoin and other coins to a hike. Here Blockchain technology turned to be building block for building trust amongst the investors of cryptocurrency. Therefore, Elon Musk, in support of cryptocurrencies mentioned that government can’t destroy cryptocurrencies and there is certain reason behind amid crackdown of Bitcoin.
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