UK Bans Bitcoin Starting January 2021

Bitcoin
Bitcoin

The UK financial watchdog prohibits the sale of digital crypto-based products such as bitcoin. This follows many people who have lost money as a result of buying this digital crypto-based investment product.

The Financial Conduct Authority (FCA) said there was no proper basis for valuing digital crypto assets. The ban will come into effect on January 6, 2021. The FCA said there was market abuse and financial crime along with volatility or extreme price movements.

“The significant price volatility, combined with the inherent difficulty in valuing crypto assets, puts retail consumers at high risk, suffering losses from crypto derivative trading,” said Sheldon Mills, interim executive director for strategy and competition at FCA. / 10/2020).

With that statement, shares on online trading platforms like Plus500, IG and CMC fell between 2% and 3%. This year, the regulatory body submitted a proposal for a ban. This policy will save retail investors about 53 million pounds, or the equivalent of US $ 69 million.

“We have evidence that this is happening on a significant scale,” he added.

FCA assesses that digital crypto products are very popular among young people. Most of the respondents opposed the ban on the grounds that crypto assets have intrinsic value.

“We remain of the view that crypto asset prices are determined by sentiment and speculative behavior,” stressed the FCA.

Getting to know Bitcoin

Knowing the world’s first Bitcoin cryptocurrency, a decade ago, the mysterious founder of Bitcoin, Satoshi Nakamoto published a nine-page academic paper entitled: “Bitcoin: A Peer to Peer Electronic Cash System.” This paper is considered to be the initial source for the creation of cryptocurrency.

Bitcoin History

Early years 2008-2010

Bitcoin transactions were first carried out in private, so no one knows when and how they took place. However, the first trade was made between Nakamoto (whose origins are unknown) and developer Hal Finney. Many have speculated that Finney, who died in 2014, was actually Satoshi Nakamoto himself.

On May 22, early 2008 at that time, Laszlo Hanyecz’s purchase of two Papa John pizzas as a Bitcoin fan marked the first real world Bitcoin transaction. Hanyecz exchanged 10 thousand Bitcoin to buy two large Papa John pizzas

The main attraction of 2013-2017

Bitcoin’s journey continued slowly and started to attract attention in 2013 after there was a lot of big inflation in the currency. At the end of 2013, the cryptocurrency experienced a jump in value from about $ 100 per coin to $ 1,000 in 1 month, before halving in value over the next three or four months. Bitcoin’s value didn’t reach $ 1,000 again until 2017.

The surge has even caught the attention of the mainstream media, with a Business Insider captioning: “I’m Changing My Mind About Bitcoin” after a few weeks earlier calling Bitcoin a joke.

Three years later, Bitcoin stayed in the $ 400 range, never getting above $ 650 or below $ 250. And one of the most notable events during that time was the downfall of the first Mt Gox cryptocurrency exchange, and filing for bankruptcy protection after being hacked into up to $ 500 million Bitcoin and $ 30 million cash deposits.

The hack is the largest in the crypto world, aggravating Bitcoin’s reputation as an asset with minimal financial protection for its users.

Bitcoin bubble inflation in 2017

After 3 years of stability, Bitcoin started to peak in 2017. This year, the value of cryptocurrency started to increase from around $ 1,000 per coin to almost $ 20,000 per coin in a matter of months. Wow!

2017 is also considered to be the first major public attempt by financial institutions to engage in crypto methods that helped increase the bubble in the Bitcoin price. Bubble started just before Christmas 2017 and only a few weeks after the futures were released, then at the end of January 2018, Bitcoin had decreased from $ 20,000 per coin to $ 10,000.

The decline was driven by growing concerns that regulators were planning to crack down on cryptocurrencies, which were largely operating outside of normal regulatory assistance at the time.

Bitcoin continued to decline throughout early 2018, before stabilizing at $ 7,000 per coin. Its value has held in the $ 6,000 to $ 7,000 range since June. So, over the past 10 years, Bitcoin has a value of $ 6,305 per coin on average.

Even though bitcoin has truly entered the mainstream consciousness now, there are still concerns about its longevity and future failure.

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