Bitcoin Falls Below $8K

February 2, 2018
Updated 2mo ago

Cheddar's "The Crypto Craze" covers the latest trends, and news in the space. This was one of the worst weeks for Bitcoin, which fell below $8,000. Cheddar's Baker Machado and Brad Smith break down the factors driving volatility and the state of regulation in this space.

Bitcoin developer Jimmy Song explains why he remains bullish. "This is something that has happened in the past and will happen in the future," says Song. "If you're looking out five to ten years this is an excellent investment."

The price of Bitcoin plummeted after India's Minister of Finance announced plans to ban the digital currency. "Not everyone is fit for it, especially during these down times," said Song.

Foreign governments are reportedly skirting international sanctions through the use of cryptocurrency. Axios' reporter Shannon Vavra explains the dangers of this digital currency and the challenges facing regulators.

"The fact that sanctions, regimes, and regulations right now aren't keeping up with the innovation in cryptocurrency is something that leaders around the world are bound to be watching right now," says Vavra.

Cryptocurrencies are able to mask illicit activities because they function across borders, are pseudo-anonymous, and can provide plausible deniability. Challenges facing regulators include the pace of cryptocurrency innovation, and risk in over-regulating and hampering innovation.