China impact on bitcoin
Recently China impact on bitcoin and other cryptocurrencies value were very devastating.so I will in this article give you a detailed analysis on this whole chaos which is due to the China move on bitcoin.as you know that recently some news came out that chinese govt. are going to ban the cryptocurrencies exchanges after they banned ICOs so everybody came in panic situation because somebody telling this is a fud or others are telling that it is true, because China has two most largest bitcoin exchanges which are ranked in top 5 exchanges in the world therefore china has a huge market cap of cryptocurrencies infact it has 23% of market cap of the world thats why china has a huge impact on bitcoin’s value only a single rumour from china dropped 500$ of value in just 24 hrs.
Then news came out that BTCChina which is bitcoin/fiat exchange in china is closing down its services then bitcoin dropped very drastically and the market cap of all cryptocurrencies dropped from 150 billion dollars to 95 billion dollars.this created a panic situation among all the users in the world. but then its made official that china is trying to regulate this thing rather then banning so china has contacted two biggest exchanges Okcoin and Houibe for a meeting. now they don’t told the outcome of the meeting but it is announced that they can continue their regular services till end of october 2017. so everybody is speculating that china is going to regulate cryptocurrency trading in their control by closely monitoring its large and handful of exchanges so that they can control it.By the time this news came out the bitcoin price jumped over 400$ in just 3 hours.
Since cryptocurrencies/bitcoins are a revolutionary innovation so therefore bitcoin has so much power in it that bitcoin can recover all its value in just a month even if some big country like china ban bitcoin totally. because this is a new and evolution bringing technology nobody can stop even if you recall the history China previously had banned bitcoins but then after 3-4 months they have to take back their decision. Bitcoin and cryptocurrencies are the future of transactions and a tight slap to those fiat currency and rich bankers and financial institutions.nobody has a full control over these also they can’t ban p2p transaction.Also the era of crytocurrencies has just begun so don’t ever try to estimate the power of it.
Why China banned bitcoin exchanges?
China banned bitcoin exchanges because they have fear that this can be a threat to their fiat currency which is CNY(chinese yuan). everybody is selling CNY and purchasing cryptocurrencies therefore they thought that this can degrade their fiat currency value. But now china is trying to regulate this and contro it by closely monitoring some biggest chinese exchanges.
This fact has to understood that nobody can ban bitoin completely it is not possible practically. but yeah they can regulate and control it which is a good thing so that nobody can use it for a bad reasons.