Today, many people have been up in arms about the biggest drop in the cryptocurrency market worldwide. You may think that this is only because of the expressions made by the owner of Tesla, Elon Musk, but it is not the whole reality. The cryptocurrency market collapsed in such a way that the price of Bitcoin sank by 20% of its value, being the largest devaluation of this virtual currency to date; thus falling below $34,000 for the first time in 3 months.
This drastic drop comes due to the restrictions imposed by the Asian giant, “China”, prohibiting financial institutions and companies from offering services related to cryptocurrencies. To put it in context, since 2019 the use of cryptocurrencies has been illegal in China since they were being used for money laundering, “as has also happened in other parts of the world.” So strong has been the use of these currencies for money laundering that this Tuesday three of China’s largest financial organizations warned consumers to stop using these currencies to avoid greater losses.
To this they added “that the recent sharp changes in cryptocurrency prices seriously violate the security of people’s assets” and are disrupting the “normal economic and financial order.”
The reality is that every government will always regulate what it cannot control and it is already beginning to be seen that the governments of the world are seeking to somehow stop the excessive use of these cryptocurrencies in order to be able to count and regulate their use and profits. We have to be very aware of the changes that are coming and always remember that you should not invest what you are not willing to lose.
