Bad Times Ahead for Bitcoin as China Plans to Ban Cryptocurrencies

Bad Times Ahead for Bitcoin as China Plans to Ban Cryptocurrencies. During the last year, Bitcoin has been growing in popularity and more and more investors invested their funds into the market of cryptocurrencies. At one point, Bitcoin has even surpassed the $5,000 mark. At that time, some experts claimed that Bitcoin is getting too powerful and that there will be actions that would try to demise the value of Bitcoin and reduce the influence of digital currencies on the global financial market.

The government of the United States is planning to introduce a bill that would impose strict control over the digital currency market and that will be done under the umbrella of the fight against the money laundering and terrorism. However, the United States is not the only country that is trying to do that as the United Kingdom, Switzerland, Thailand, and several other countries have announced that they will be passing similar bills sometimes in the nearest future.

China Going Openly Against Bitcoin

However, China is the country that went the furthest in this action as they announced that Initial Coin Offerings have been banned in the entire country and that the companies that collected funds using that method will have to return the entire amount in order to protect the interest of the investors. However, it seems that the campaign of the Chinese government to hit Bitcoin and other digital currencies will not be ending at this point, as there are reports of some more drastic actions being prepared.

Namely, those reports indicate that China is actually planning to shut down all exchanges of cryptocurrencies in the country which would be the huge hit for the market of digital currencies. According to the source from the Chinese government, they are planning to ban all cryptocurrency exchanges. Besides that, the source has also revealed that the government currently does not have a way to make Bitcoin completely illegal because it is very hard to prevent over-the-counter transactions of digital currencies.

Will Bitcoin Suffer a Huge Blow?

Currently, Chinese digital currency market takes up 23 percent of the global digital currency market and because of that, if this turns out to happen, it will be very hard for this market to survive this kind of blow. Immediately after the first reports about this issue appeared in the world, the value of Bitcoin and other digital currencies plummeted significantly to the lowest levels in a long time. Even if this does not turn out to be true, these rumors have also served their purpose and that is to reduce the value of Bitcoin and to stop investors from investing in digital currencies.

Many of those investors involved in the digital currency business agree that this market needs to be regulated but what China is doing is something too radical and something that would have devastating effects on people all over the world. The motivation behind the recent actions of the Chinese governments is officially to protect the people from frauds and manipulation in this market and to prevent digital currencies from causing the instability in the financial market of China. At this moment, the future of Bitcoin does not look good but one sign of hope might be Russia that will be legalizing Bitcoin and other digital currencies and making them an official method of payment.

Written by Ivan Potocki

Advertisement

Click To Join Our Community Telegram Group