Over the past year Bitcoin has greatly increased in value, mostly due to its popularity in China.
Unfortunately for Bitcoin, the Chinese government is not a fan of cryptocurrencies, which are mostly traded by Chinese citizens who are hedging against falls in the yuan.
In the past, the Chinese government has banned Bitcoin transactions at banks and retailers, and recently it banned ICOs, Initial Coin Offerings. Now it’s going further:
Chinese authorities are ordering domestic bitcoin exchanges to shut down. China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services.
It’s still legal to mine and invest in Bitcoins, but for how much longer? China seems really determined to keep Bitcoin from gaining any more traction. Will it work? Or will determined traders figure out a way to keep using Bitcoin regardless?
In the past, China’s actions have pushed down the value of Bitcoin for short periods, but it always rebounds, soaring even higher. Recently it hit $5,000 before falling to a bit over $4,000 and as at the time of writing this article, it has fallen even further below $4,000.
The latest Chinese action could push Bitcoin down even further. And if it doesn’t, will China get tougher, banning Bitcoin investment entirely?.
If China goes, so does Bitcoin.
Unfortunately for Bitcoin, the Chinese government is not a fan of cryptocurrencies, which are mostly traded by Chinese citizens who are hedging against falls in the yuan.
In the past, the Chinese government has banned Bitcoin transactions at banks and retailers, and recently it banned ICOs, Initial Coin Offerings. Now it’s going further:
Chinese authorities are ordering domestic bitcoin exchanges to shut down. China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services.
It’s still legal to mine and invest in Bitcoins, but for how much longer? China seems really determined to keep Bitcoin from gaining any more traction. Will it work? Or will determined traders figure out a way to keep using Bitcoin regardless?
In the past, China’s actions have pushed down the value of Bitcoin for short periods, but it always rebounds, soaring even higher. Recently it hit $5,000 before falling to a bit over $4,000 and as at the time of writing this article, it has fallen even further below $4,000.
The latest Chinese action could push Bitcoin down even further. And if it doesn’t, will China get tougher, banning Bitcoin investment entirely?.
If China goes, so does Bitcoin.
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