On April 16, the chief executive of BlackRock group said that cryptocurrency may become an important asset class. Previously, BlackRock's chief investment officer also believed that the development of cryptocurrency will be lasting. He believed that he had seen the central bank talking about digital currency, the acceptance of digital currency technology and cryptocurrency is real, and the digital payment system is also real In the future, bitcoin will continue to exist.

BlackRock started to lay out the whole encryption market earlier this year, providing bitcoin futures trading for investors through its two funds in January.

But also on the 16th, Turkey's central bank announced that it would ban the use of cryptocurrency for payment from April 30. The Central Bank of Turkey also said at its previous meeting that there are significant risks in encrypted assets, because encrypted assets are not subject to any regulatory and supervisory mechanism, nor are they subject to the supervision of central regulators. Their market value may fluctuate excessively, and they may be used for illegal acts.

The hyperinflation in Turkey is extremely serious. In March, the inflation rate rose to 16.19%, a six-month high. It is expected that the inflation rate in Turkey may further rise to the peak of 18% in April, which leads to the sharp depreciation of the Turkish Lira exchange rate. As a result, the Turkish people quickly started the upsurge of converting lira into cryptocurrency, and the cryptocurrency transaction volume soared. From the beginning of February to the end of March, the cryptocurrency transaction volume reached 218 billion lira, and the Internet search volume of Turkish domestic bitcoin also reached the highest level in history in March. Bitcoin has become an attractive hedging tool in Turkey because it is out of the jurisdiction of the government and the central bank, which forces the central bank to make a decision to ban the transaction payment of bitcoin.

It remains to be seen whether the decision of Turkey's central bank can completely ban the trading of bitcoin, which exposes the potential huge problems faced by bitcoin. What kind of regulatory measures will governments take against bitcoin, and whether they will truly recognize the legal status of bitcoin, all of which create great uncertainty for the future development of bitcoin.

(2021-4-18)