Insights from a prominent Bitcoin commentator that global powers are beginning to feel threatened by cryptocurrencies.
Following news that the Mt. Gox bitcoin exchange has shut down a statement sent to Here is the City from Shai Heffetz, MD of InterTrader and InterTrader Direct sheds some revealing light on the issue.
Heffetz believes the conspicuous disappearance of Mt. Gox is down to global governments putting pressure on Bitcoin. He states, "Many governments are starting to realise the real threat that Bitcoin could pose to their fiat currencies and as such it is in their interest to close it down.”
Heffetz goes on to highlight the severity of the situation,
“The currency wars are becoming fierce and bloody. All countries have been inflating their currencies while skewing the data to disguise their frenzied printing of cash. It may be that people still have enough money to fill their bellies, but the reality is that the cost of living has increased significantly in the last five years. Continued quantitative easing is not a sustainable solution.
Bitcoin and other alternative currencies are beginning to be perceived as viable alternatives to fiat currencies. As Bitcoin cannot be manipulated by any government, global powers are starting to show their concern and beginning a crackdown. As the cracks of skewed inflation data start to show, people may begin to trust an independent digital currency over fiat currencies with a distorted value".
For many this news may serve to reinforce existing beliefs in the ruling powers’ stance on cryptocurrencies. How the situation will pan out from here is of significant interest, especially given the abundance of hype surrounding Bitcoin across the net. We’ll be keeping a close eye on the controversy and will be reporting on further developments.
images: © Zach Copley