Bitcoin cannot replace currency

Bitcoin’s decline was due to China’s efforts to combat the mining and trading of cryptocurrencies, and Tesla suspended its willingness to accept it as payment due to environmental concerns about energy use, thus dragging down the decline of Bitcoin .

The U.S. Treasury Department also called for a request to report a large number of cryptocurrency transfers to the IRS, and the Federal Reserve flagged the risk of cryptocurrency to financial stability.

Vishnu Varathan, head of economics and strategy at Mizuho Bank, said in the chat room of Refinitiv Eikon’s Global Market Forum: “This is not a substitute for money.”

He said: “At best, it is an alternative asset, although it has no intrinsic value.” He added that blockchain technology and its potential “must not be confused with cryptocurrency.”

Since Bitcoin crashed to a monthly low of about $30,000 last Thursday, this puzzling suspicion has prevented Bitcoin from closing above its 200-day moving average. This week, it has received support of around US$37,000, but the forging price does not exceed US$40,904. The ether, which reached US$1,730 last weekend, attracted buyers of more than US$2,500.