September 27, 2020

WELTRADE Blog | Why can bitcoin fall further? Will Google destroy bitcoin? Is a quantum computer a threat to the Kryptonians?

A few weeks ago, the price of bitcoin fell to a 5-month low during a speech by the head of the company. Facebook (NASDAQ:FB) Mark Zuckerberg at a hearing on the financial services committee of the US House of Representatives. Congressmen expressed concern about cryptocurrencies in general and the Libra project in particular, stating that cryptocurrencies pose a threat to traditional fiat currencies such as the dollar and can also be used to finance illegal activities and money laundering. Congressman Sherman also called on Congress to consider banning cryptocurrencies.

WELTRADE Blog | Why can bitcoin fall further? Will Google destroy bitcoin? Is a quantum computer a threat to Kryptonians?

When asked why companies leave the projectLibra (Mastercard (NYSE: MA), Visa (NYSE: V), eBay (NASDAQ: EBAY) and PayPal (NASDAQ: PYPL) left the project), Zuckerberg replied that Libra is a risky project, and he is not sure that he will work. Zuckerberg also said that Libra will not be launched until it receives regulatory approval.

WELTRADE Blog | Why can bitcoin fall further? Will Google destroy bitcoin? Is a quantum computer a threat to Kryptonians?

The downward pressure on the price of bitcoin could alsoto provide news that a bill has been submitted to Congress providing that stablecoins be given the status of securities. If this bill is adopted, stablecoins and their issuers will fall under the jurisdiction of the Securities and Exchange Commission.

Another factor dropping the price of the maincryptocurrency has become a statement by Google (NASDAQ: GOOGL) about the progress in creating a quantum computer that can perform operations thousands of times faster than the most powerful supercomputers. Quantum computers will be able to solve complex algorithms, which is a cause for concern for investors, since such computers will become a threat to the bitcoin network.

WELTRADE Blog | Why can bitcoin fall further? Will Google destroy bitcoin? Is a quantum computer a threat to Kryptonians?

What do you think?

Vasily Barsukov (Chief Dealer WELTRADE)