After Donald Trump suddenly released a mysterious tweet about Bitcoin last week, US Treasury Secretary Steven Mnuchin unexpectedly held a press conference on Monday. He declared the end of bitcoin and cryptocurrency in a coding language.
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Steven Mnuchin said that the federal government wants to crack down on and stop any criminal activity using cryptocurrencies for payment, and he does not lie.
This is a top priority for the federal government, especially involving terrorism, drug trafficking and money laundering.
The United States also wants a stable financial market, preferably a long-term stable financial market.
As I have written many times, bitcoin speculation is a futile thing.
Various sources estimate that the total value of all bitcoins worldwide is $41 billion. Although this is only a round-the-clock error in the $84 trillion global economy, there are still $41 billion that are not invested in more traditional, safer securities.
Bitcoin speculation may lead to more and more fanaticism. When the market crashes, this means that many people will lose a lot of money.
Who will these people complain to? The federal government. They don't want to be scapegoats, and they don't want to be accused of not supervising scams that later prove to be dangerous.
There is another reason why the federal government wants to ban Bitcoin.
The Federal Reserve hopes that the US dollar will become the king of money. Steven Mnuchin said at a news conference that the government will not allow anything that threatens the dollar as the world's reserve currency.
If people turn to Bitcoin, especially because it has no real value, it could undermine the stability of the global market.
In his statement and Q&A session, Steven Mnuchin repeatedly stated that Facebook and other cryptocurrencies would have to comply with all banking regulations that all other US financial instruments must comply with.
This means complying with FinCEN's rules, the Ministry of Finance's criminal regulatory framework.
These rules are so complex, cumbersome, and trivial that every financial institution is required to hire high-paying compliance officers.
Regulatory compliance is very expensive and time consuming. It will take years to establish a regulatory framework, and it will take years to explain the framework, and it will take years to achieve compliance.
This will kill bitcoin and cryptocurrency.
Bitcoin and cryptocurrency transmitters have little or no capital or expertise to meet the regulatory guidelines to be implemented.
The federal government will kill Bitcoin through regulation
In 2011, the US Department of Justice sued several of the biggest poker site executives, seized these sites, frozen player accounts, and shocked the online poker world. It turns out that Full Tilt Poker is a Ponzi scheme, with only $60 million available, but players owe them $390 million.
The Barack Obama government hates payday lenders, gun dealers, and porn operators. Therefore, they tried to close them by cutting off the way these companies entered the financial system. The FDIC threatens fines and litigation, and unless banks reject their business, they face fines and litigation. At the same time, ACH, which facilitates online payday loan transfers, was also closed.
There is no doubt that the federal government wants Bitcoin and other cryptocurrencies to perish.
They will kill them through supervision.
Of course, stupid bitcoin traders flocked to the bitcoin market, pushing up the value of bitcoin because they didn't really understand what Steven Mnuchin said. (chain to finance)