Bitcoin, as the undisputed largest digital asset, fell as much as 4.1% to $31,472 Thursday morning, marking its lowest level in 3 weeks. The retreat is not limited to Bitcoin, as other major cryptocurrencies also dropped. Ethereum, for example, was down 5% and Litecoin was down by a similar margin. The moves come as cryptocurrencies and digital money backed by central banks -- otherwise known as CBDCs -- become a topic of interest once again, instigated by Federal Reserve Chair Jerome Powell stressing the need to get such a project right.
Bitcoin, and cryptocurrencies in general, serves the purpose of amplifying the wealth of its proponents through a combination of tax avoidance, finished regulatory oversight, and artificially enforced scarcity. With the ever-increasing pressure on regulating the crypto market, the coins’ attractiveness for big investors has been diminishing. Far from being decentralized, cryptocurrency today is tied to the existing centralized financial system.
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