Unafraid of global "encirclement and suppression", Bitcoin hits new highs with market value exceeding $200 billion

The skyrocketing price of Bitcoin seems to be unstoppable.

In the past week, several governments have introduced regulations and crackdowns on virtual currencies. Even so, the price of Bitcoin still stands tall. According to data from the CoinMarketCap platform, the price rose to $11,961.6 in the early hours of this morning, with a market value of over $200 billion.

The current price of Bitcoin on the Bitstamp platform has also risen by 1.72% to $11,875.

Since the beginning of this year, with the continued soaring prices, the market value of Bitcoin has surpassed the market value of well-known listed companies such as Netflix, Morgan Stanley, Goldman Sachs, Disney, and General Electric.

From an intuitive point of view, with a current market value of $200 billion, even if Bill Gates and Warren Buffett put their entire fortunes into buying all the Bitcoins, they still can’t afford to buy all the Bitcoins. According to Forbes data, the two’s latest total assets are $89.9 billion and $84.2 billion, respectively, totaling $174.1 billion.

While the skyrocketing rise of Bitcoin has investors celebrating, governments around the world are also becoming increasingly vigilant.

Indonesian media Kontan Daily reported today that the Indonesian central bank is drafting a document to ban domestic bitcoin transactions starting next year. The Indonesian central bank also said that bitcoin is likely to be used for illegal activities such as terrorism and money laundering, so it requires merchants to refuse to accept bitcoin.

Yonhap News Agency reported yesterday that the South Korean government is considering imposing corporate taxes, gift taxes, etc. on virtual currencies, and the National Tax Service of South Korea is also considering promoting the advancement of virtual currency-related taxation through measures such as amending the law.

Last month, South Korean Prime Minister Lee Nak-yeon publicly expressed concerns about virtual currencies, saying they led some young people to commit fraud and “if we don’t manage it, it could lead to serious problems.”

In the United States, the S.1241 bill being processed by the Senate Judiciary Committee will amend the definition of financial accounts and financial institutions in relevant laws to include digital currencies and digital currency exchanges. If the bill is eventually passed, it will have a far-reaching impact on digital currency users in the United States and overseas.

On Monday, Denmark's central bank governor Rhode said the Danish central bank would not issue digital currency domestically; cryptocurrencies are not suitable as a means of payment or a means of storing value.

Last Sunday, the British newspaper The Daily Telegraph reported that the anonymous nature of transactions makes Bitcoin and other digital currencies convenient for criminals and tax evaders. In response, the UK Treasury revealed regulatory plans that will require all participants in digital currency transactions to disclose their identities and report their trading activities.

Last Friday, Turkey’s State Directorate of Religious Affairs (Diyanet) issued a statement saying that the “speculative nature” of Bitcoin means that buying and selling Bitcoin is inappropriate for Muslims:

At this point in time, buying and selling virtual currencies is not in line with religious beliefs because their valuations are easily affected by speculation, can be easily used for illegal activities such as money laundering, and are not subject to state audit and supervision.

Also last Friday, Indian Finance Minister Arun Jaitley made it clear that India does not recognize cryptocurrencies as legal tender.

On the same day, the Governor of the Bank of France also said that Bitcoin is not a currency at all, not even a cryptocurrency, but just a speculative asset. The value and extreme volatility of Bitcoin have no economic basis, and investors must bear their own risks.