Radio hosts Chris Evans and Vassos Alexander talk about crypto currency
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Cryptocurrencies such as DOGE have suffered in recent months, despite an impressive rally at the beginning of the year. Volatility has taken altcoins and even their established counterparts such as Bitcoin and Ethereum. One of the culprits biting chunks off the market is the Chinese government, which has recently moved to crack down on decentralised transactions in their country.
China tightened its vice grip on national transactions and mining on June 21, hoping to dissuade illegal activity.
Bitcoin slumped to a two-week low of $29,458 (£21,295) last Tuesday after authorities in Sichuan ordered an end to mining projects.
The Chinese government’s move harmed confidence in the currency, but experts believe this is where the influence of these threats end.
Andrea Barbon, Professor of Economics at the University of St Gallen, is one of them.
He told Express.co.uk decentralised currency is, by nature, near impervious to attempted crackdowns.
Attempts will only serve to bolster trust in the decentralised method, in the end, he said.
Dr Barbon said: “Cryptocurrencies’ primary purpose is to avoid government censorship, and their decentralised nature makes it virtually impossible for ‘crackdowns’ to be effective.
“The longer-term impact of government attempts to control cryptocurrencies might be positive, as they showcase the censorship-resistance of blockchain technology.”
So far, Dr Barbon has proven correct, with several currencies now thriving once more.
According to Coindesk, Bitcoin has made significant gains over the last week.
From its trough on June 22, it has risen by nearly $15,000.
BTC’s value currently stands at $35,905, an increase of five percent over the last week.
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Dr Barbon added China’s move could prove specifically lucrative for the western world.
He said western countries could attempt to “take advantage of the situation” by attracting miners looking to relocate away from harsh economic controls.
These countries would ultimately take control of an “economically profitable industry” with deep roots in China.
The professor also suggested a currency he believes is well suited for migration.
He settled on Cardano (ADA), a relatively cheap token at $1.40 that also suffered from the recent crackdown.
Dr Barbon said the coin has several “features” which would see it adapt to potential future financial regulations.
He said: “Among other interesting features, it allows the possibility to add metadata to transactions, including certified sender and receiver identification.
“This may allow it to comply to KYC (know your customer) and money laundering regulations in future.”
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