Cryptocurrencies are falling today as new regulations in China and Korea continue to spook the markets.
As I discussed in
last week's update I believe this is a short-term trend as regulators attempt to take some of the air out of these inflated markets.
Let's be clear: cryptocurrencies WILL BE REGULATED by every single government. It's not a matter of "should they" or "how can they enforce?” etc. It's a matter of each government trying to understand this tectonic shift in the economy and how it will affect their ability to raise taxes, manage monetary policy, deal with the negative implications of the privacy inherent in cryptos and so on.
This is a GOOD THING.
Once something is regulated, the masses gain more confidence. They know their government is paying attention and, in an ideal world, will protect them.
Whether the government actually succeeds in that is uncertain. That’s why the beginnings of regulation will always seem scary to the speculators.
But those who are serious about accumulating substantial wealth in the long run will welcome all attempts governments make at trying to understand cryptos.
The fundamental value of digital currency still remains. Over the long term, I believe these assets still have a tremendous amount of unrealized potential.
I advise readers to continue to hold their positions in bitcoin and ethereum. In fact, if you've been looking to add to your position, you may want to consider buying the two coins at new lower prices.
