The Reasoning behind Attacks on Bitcoin and Other Digital Currencies

The Reasoning behind Attacks on Bitcoin and Other Digital Currencies. Bitcoin is growing to become officially recognized currency and if the rising trend of this cryptocurrencies continues with the same pace, we will be seeing the first countries that would make Bitcoin their official currency. With that kind of rise in popularity, it was expected that there will be some people or institutions that might not be happy with cryptocurrencies and their future trajectory.

Some of the biggest opposition to the cryptocurrencies came from the world’s biggest financial institutions such as central banks and big private banks. However, big banks are not the only that are having issues with cryptocurrencies because countries governments have been even tougher in their criticism. From the U.S., UK, Singapore who announced tougher regulations for cryptocurrency market to China that will probably be banning cryptocurrencies in general, many countries have been trying to impose stricter control over cryptocurrencies.

Recently, J.P Morgan and Chase CEO and Bank of America had a huge role in the drop in the value of all cryptocurrencies, which just proved that those and other similar institutions still have a huge influence in the cryptocurrency market and that they could potentially take down the entire market if they had the opportunity. Big banks and governments are not alone in their skepticism about cryptocurrencies as many experts from financial and other related industries have also expressed their worries.

Nobody from the world of cryptocurrencies is denying the possible dangers but in their opinion, cryptocurrencies have already proven to be stable enough and each day the risks of investing in cryptocurrencies is getting smaller and smaller. Because of that, calling Bitcoin one of the biggest frauds ever seems to be too much and a desperate move of the established financial institutions that might be fighting for dominance in the global financial market.

Just like established banks, countries will also lose huge amounts of income that comes from printing money and that is one of the reasons why they are so willing to act against cryptocurrencies. Besides that, if cryptocurrencies become globally accepted, that would probably lead countries to lose the control over the economy and they are just not willing to do that as the benefits of having absolute control of the country’s economy are immense.

The monetary economy has been resting on the principle of controlling the flow of money that goes from the central bank to the economy but Bitcoin and other cryptocurrencies are excluding that kind of economy. They all operate on Peer-2-Peer principle that enables transfers of funds without the interference of any third party or what came to be known as a middleman.

According to some experts, Bitcoin and other cryptocurrencies might actually be the thing that could completely stabilize financial market and not to destabilize it as many established banks are saying that will be happening. No matter what the banks and the governments say, cryptocurrencies have become a serious factor in the global financial sector and it will not be easy for their opponents to take them down.

Written by Vedran Ostojic

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