In what appears to be the latest warning directed to those who are planning to invest in Bitcoin, the European Union has stated that the virtual coin will not be able to escape the looming crackdown.
Lack of a Guaranteed Value
Speaking on Monday, February 26, 2018, the EU through Mr Valdis Dombrovkis, its financial services commissioner, said that most virtual Cryptocurrencies like Bitcoin, operate in the market without a guaranteed value. He further stated that the best thing this crypto coin should do is to come up with a regular and comprehendible warning that would protect the investors against any kind risk to their businesses.
Since this leading Cryptocurrency experienced a sudden rise of value a few days prior to Christmas 2017, many investors from different countries have been attracted to it. Speaking of the speculation that has also appeared to be on the rise over the past few days, Mr Dombrovkis said that this carries so many risks to the investors in this market. For that reason, he revealed that the European Union has plans of ensuring that this leading virtual currency is regulated in the few months to come.
He stressed on the factor that digital currencies such as Bitcoin and Ethereum aren’t real currencies and their value is not guaranteed in any way. As a result of this, this EU official said that the Cryptocurrency has of late become subjected to much speculation. This, he explained, exposes the traders and other market stakeholders to a potential risk.
One of the substantial risks he talked of was the possible risk of the investors losing their hard-earned investments.
Warnings to the Consumers
This is why the EU suggests that Bitcoin warning about some of these dangers to the consumers is very important. They say the warnings should not only be very clear but should also be done repetitively and relayed across all the jurisdictions.
The EU had earlier met to discuss some of the opportunities present for this Cryptocurrency, as well as some of the challenges that it faces.
Even though they suggest that the Cryptocurrency should warn its consumers, the EU said that its initial plan of regulating Bitcoin is still intact. This will come sooner than expected, especially if they notice that the risk has continued to emerge without any clear foreign redress. The investors in this market have been calling for caution, but it seems nobody is caring.
Call to Embrace the Blockchain Technology
According to Mr Dombrovkis, Brussels should embrace and recognise the technological importance of the Blockchain technology – the system in which Cryptocurrency trading is anchored on. The European Union is convinced that the Blockchain technology contains a potent promise for the financial sector, and all the European markets should embrace this new system if they want to remain relevant.
Bitcoin runs on a strong Blockchain technology that has been designed to work best for its millions of users. This is why it has been applauded all over the universe, as the new sensation in the world of finance. The Blockchain technology is a digital ledger of economic transactions that cannot be easily corrupted. Apart from the financial operations, the Blockchain technology has also been designed to record all other valuable transactions.