Investing in cryptocurrency has always been controversial. In that regard, we have previously posted several blogs that suggest that legal tender is what the government says it is. Recently, China has made it clear that it does not recognize cryptocurrency as legal tender and the banking system does not accept cryptocurrencies or provide relevant services.
Currently, both China and the U.S. are exploring digital currencies based on their own currencies.
Investors and cryptocurrency enthusiasts should remain aware that governments are not supportive of cryptocurrencies and are likely to continue to marginalize the concept through increased regulation.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®