Towards the end of the week, cryptocurrency prices in Friday morning trading are looking decidedly mixed. Here’s the prices for some of the biggest names in cryptocurrency as of 10:10 a.m. EDT:
- The guiding star of the crypto industry Bitcoin (CRYPTO: BTC) is up a modest 1.6% in the past 24 hours.
- Dealer darling Dogecoin (CRYPTO: DOGE) fell by 2.2% over the same period.
- ether (CRYPTO: ETH) leads the way up by 4%.
And for that matter, crypto marketplace Coinbase Global (NASDAQ: COIN) has also increased – 2.2%.
The headlines on cryptocurrencies look just as mixed.
As Coindesk reported this morning, China – whose crackdown on cryptocurrencies caused panic in early summer and crypto prices plummeted – appears to be done with the hammer. China has “closed” the crypto market, Coinbase reports, and now that most of the crypto mining hubs in the country have closed and the government has told financial institutions to refrain from “conducting or enabling virtual currency transactions and trading” . further regulations on cryptocurrencies are not expected.
Granted, the regulations already passed seem to have essentially removed the world’s most populous nation from the cryptocurrency market, which won’t be good for growth trends. But at least China doesn’t seem to be planning to further devastate the market – and so crypto investors can breathe a sigh of relief in this regard.
And today there is more news from the second most populous nation in the world. Indian business newspaper The Economic Times reports that Indian lawmakers are working hard on a new bill that will divide cryptocurrencies into one of three categories: those used for investments, for payments, or as a form of “utilities”. The bill, when it becomes law, will also classify all cryptocurrencies as a form of commodity value.
Is that good news or bad news? Well, if you consider that just under a week ago The Economic Times asked itself aloud whether the Indian government could perhaps ban crypto currencies altogether, the fact that the government now only wants to regulate and even institutionalize crypto is a positive thing.
I would even go so far as to say that the change in sentiment here is good for cryptocurrency investors, even if India’s law has not yet come into effect. In India, as in the US, while crypto traders may resist the idea of government interfering with their fun, well-designed regulations have the potential to curb fraud and abuse that could discourage serious investors from investing in cryptocurrency. Regulation also has the potential to calm price fluctuations and volatility in this market, turning crypto into more of an investment and less of a speculation.
If you ask me, that’s a good thing – and a reason for soaring crypto prices.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.