Has China Lost the Power to Impact Bitcoin $BTC?
The future of Bitcoin in China still doesn’t look too bright, however, reports say that the Chinese government will no longer be able to impact on the price of Bitcoin.
Many have suggested that China could be the influence behind Bitcoin slipping back down to below $5000, however, the opposition claim that as China has already banned trading activities around Bitcoin that they will have limited impact moving forward.
Chamath Palihapitiya, the prominent venture capitalist, and owner of the Golden State Warriors stated, governments are limited in what they can control in regards to Bitcoin and public blockchain networks.
“What countries can constrain today is how it [bitcoin] is effectively traded but it cannot be controlled. It is a fundamentally distributed system that exists peer to peer,” said Palihapitiya.
As a result of China banning Bitcoin, the exchange markets trading declined greatly, so much so that it now only accounts for 1% of the total Bitcoin transactions globally.
As the Chinese markets are so low, the trading volumes could therefore not impact on Bitcoin on a greater scale.
In the upcoming months, depending on the state of the Chinese Bitcoin market, China could positively impact the price of Bitcoin by resuming cryptocurrency trading. But, it will not lead to a decline in the price of Bitcoin, as the Bitcoin market has already recovered from the ban imposed by the Chinese government.
What will the future hold? Only time will tell. However, with further uncertainties surrounding Bitcoin having now been created, it is important now more than ever to stay ahead of the latest shifts in the Bitcoin market as shifts could bring both risk and opportunity to investors… Trading.co.uk are here to help you spot them!
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Author- Becki Leighton from Trading.co.uk
*Quote taken from NEWSBTC