Currently, Bitcoin is experiencing high volatility that it maybe caused by the recent SEC impediment to create the first bitcoin ETF, or exchange traded fund.
Some people in the crypto community were confident about the U.S. Securities and exchange commission positive decision that this hope drove the price, allowing bitcoin to reach its new all time highs.
Then, the SEC announcement about its decision to reject the Winklevoss’ proposal affected the bitcoin and other digital currencies market, but - after a first drop - the greatest part of the digital currencies are currently experiencing new highs.
Right now, Ether, or the cryptocurrency that fuels the Ethereum blockchain, reached its new all time high with a price of $40 at present time.
That said, leaving aside the price-related matters, the SEC decision opened another important question: can bitcoin and other digital currencies survive without any approval by institutions? Is it true - as said by Bank of Canada - that it cannot reach a massive diffusion without any formal regulation?
From Here To Where? Bitcoin And The Future Of Cryptocurrency
There’s a number of reasons why cryptocurrencies are so inherently popular. They are safe, anonymous and utterly decentralized. Unlike conventional currency, they are not controlled or regulated by some singular authority, their flow is determined entirely by market demand. They are also nigh impossible to counterfeit, thanks to the paranoidly complicated code system that encrypts each and every transfer, ensuring complete anonymity and utter safety to each and every user. They even make for a genuinely rewarding, if risky, investment endeavor, despite the fact that any financial advisor in their right mind will caution you against them. Therefore, despite the admittedly high stakes that this sort of dealing entails, not to mention the lack of any government agency to lend credence to them, cryptocurrencies can only thrive and multiply.
If I were to tell you of the history of cryptocurrencies, I would have to begin with cryptographer David Chaum, who in the 1980s devised an extraordinarily secure algorithm that allowed for the kind of encryption required in electronic fund transfers. Chaum’s “blinding algorithm” laid the groundwork for the future development of all types of digitalized currency transactions, be it alternative currencies like Bitcoin or just plain old digitalized cash transfers.
