Bitcoin has risen meteorically in recent months. Many investors call cryptocurrency the ‘new gold.’ But at least one analysts sees trouble on the horizon for cryptocurrencies in the form of government crackdowns. A recent announcement in China lends credibility to his warning.
Bloomberg reports emerging markets fund manager Mark Mobius warned that governments will begin clamping down on digital currencies because of their use in illicit financing, terrorism, and drug trafficking. He said that’s going to mean a rush back to gold.
Cryptocurrencies are beginning to get out of control and it’s going to attract the attention of governments around the world. You’re going to get a reversion back to gold because people are going to wonder, can I really trust these currencies?’
As if to confirm Mobius’ prophecy, on Monday the People’s Bank of China announced initial coin offerings (ICOs) are now illegal and ordered the halt of all related fundraising activity. In an ICO, digital currency based on blockchain technology is sold publicly and often traded on secondary exchanges.
This post was published at Schiffgold on SEPTEMBER 6, 2017.
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