Bitcoin, Cryptocurrencies Risk Currently

 

The main risk facing the crypto community currently is from US regulatory and law enforcement agencies as the cases of Coinbase, Ripple and Binance cryptocurrencies exchange CEO Zhao showed.

Bitcoin, cryptocurrencies are already an established asset class, not a nascent super niche asset. Individual investors, asset managers and hedge fund managers are well aware of Bitcoin, cryptocurrencies investing characteristics. Bitcoin's risk, measured by the volatility or the standard deviation is also known to investors.

Now the main risk facing cryptocurrencies are the actions of regulatory, law enforcement authorities which by only one decision of theirs could close a leading cryptocurrency as the Ripple, XRP case of Coinbase showed or outlaw the cryptocurrencies asset class altogether.

The threat of banning Bitcoin, cryptocurrencies has been present ever since the crypto asset class came into existence, since it is not regulated by central banks, government authorities. That is, crypto does not yield to government control.

Bitcoin, cryptocurrencies investing and the associated business ventures, however, present an already large and exponentially growing source of government revenue, which is very welcome by governments.

So, for now, in Wolfteam Ltd.'s view in the mid-term Bitcoin, cryptocurrencies are going to be law enforced, but not outright banned by central governments.

Which will ensure that cryptocurrencies flourish.