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The Ruble ever to be plummeted, Putin definitely have gone to save it; But who would want to save bitcoin?
01/09/2015 by LakeBTC.com
As the government issued currency in Russia, Ruble suffered a massive landslide last month, and the Russian government introduced a number of measures to save the Ruble. In the desperate attempt to preserve their money, a lot of people transferred Ruble into bitcoins. Unfortunately, bitcoinis suffering a huge volatility this month, who is going to save the bitcoin market?
Bitcoin had receiveda lot of attention lately, a large number of speculators poured into bitcoin markets to keep an eye onthe emergence of price bubble. It’s a well acknowledged theory that bitcoin has the potential to replace gold, although, the value of bitcoin does not based on its price just yet. In the relatively short history of bitcoin, it clearly shows that the more volatility the market experienced, the more development it has been for bitcoin itself, it’s part of the process to make bitcoin mature and eventually remove the bubbles and stabilize the price, which is the key criteria for a currency.
So there is no point to debate about saving bitcoin,it will run its own course and grow at its own pace. The market is still too young, and there are many risk factors such as money laundering, smuggling, future trading, financial derivatives, and gambling, which are strictly forbidden in China. Additionally, there are flash crashes caused by mainly leverage and price manipulation, and of course trader’ mistakes. These risks are usually stack on each other to further worsen the situation. Even with all these risks, the Chinese regulators are quite wise and open-minded: Bitcoin is a type of commodity that people are free to own, buy, sell, and trade. So the government are not banning bitcoin, but the high-risk products that mentioned earlier, because there are still a few Chinese exchanges that are ignoring the regulations, they always promise zer percentage trading fee with the high-risk products, such as margin, short trading and P2P lending without proper risk management tools. For example, there's a LTC flash crash to 1 CNY from 100 CNY literally happened within seconds a few months back, as a result of short trading platform.
The overall outlook of bitcoin in China is still being cautious, despite a few former government officials who’s making positive public speeches. The top concerns are still around safety. After what happened to MtGox, the fall of the biggest exchange in Japan, which turns out to be a inside job based on the latest investigation. What makes the situation worse is that there is another exchange in Europe who recently got suspended for the stolen bitcoin. It’s been made clear that the most important asset of and exchange is compliance, together with financial risk management and internal controls, as one of the biggest exchanges in the world, LakeBTC has been holding on to security, liquidity, and service, which are the strengths that make it stands out. With years of experience trading treasuries, agency bonds, currencies, commodities, interest rates, volatilities and all types of derivatives and structured products, LakeBTC is dedicated to building a bitcoin platform for pricing, liquidity, security, derivatives and indexes. With years of risk management and internal control experience in financial industries, LakeBTC has been dedicated tobuild the most solid foundation to ensure customers' fund and privacy being safe and secure.
Just as any new inventions, the beginnings are always full of risk, but there is also tons of hope, LakeBTC is one of the bitcoin enthusiastic that will fight to protect and cherish the growth of bitcoin and looking forward to be part of the bright future of it.