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In January 2018, Bitcoin which was the poster boy for cryptocurrencies at the time had its value drop from nearly $20,000 to all the way down to $5,000. This crash in cryptocurrencies value across the market came as a huge shock to both small and big investors. The following year, cryptocurrencies saw a consistent downtrend in its value and enthusiasm towards them by the public.
Those who had warned about the authenticity of these crypto assets were all screaming ‘I told you so’. People lost their savings and whole businesses went into the ground as a result. Blames of foul play were thrown around; however, there was no way to confirm or reject these claims as cryptocurrencies had inherently avoided any oversight or control up until that point.
In light of these events, a few days ago in an interview with Andrew Bailey, the head of Britain’s Financial Conduct Authority, Andreas Utermann said about crypto, “You should outlaw it.” Utermann is Chief Executive of Europe’s largest asset managers company, Allianz Global Investors. “I am personally surprised that regulators haven’t stepped in harder,” Mr. Utermann added.
“That’s quite strong actually,” Andrew Bailey responded to Mr. Utermann’s comments. “There is no intrinsic value in crypto assets. We are watching that very closely… Authorities also have crypto coin offerings (ICOs), which firms have used as an alternative way to raise funding, under surveillance too.”
Despite Mr. Utermann’s strong feelings against any form of crypto assets, the underlying technology of cryptocurrencies, blockchain technology, has seen a huge increase in its adoption into mainstream technologies. Some of the largest corporations in the world have nodded to the potential that this revolutionary technology holds. Companies like IBM, HTC, Samsung, Amazon, Walmart, Unilever and many more are in the process of implementing plans to incorporate blockchain and distributed ledger powered technologies into their operations.