After the worse week ever for Bitcoin which witnessed a drastic fall in price, causing others cryptocurrencies to also fall in price. Cryptocurrencies is having their biggest market in China, due to this lead to a drastic fall in price in for Bitcoin and other cryptos like ethereum, litecoin and ripple after the Chinese exchange ban.
After falling for most of the week like a stone, Bitcoin, the “people's currency,” made a signficant upward shift on Friday and early Saturday morning, gaining near to 12 percent within 24 hours.
Other cryptocurrencies followed the trend. Ethereum also went close to 12 percent, while Litecoin fared even better gaining close to 19 percent.
#As of Saturday September 16, 2017 at 9 pm.
That should come as a joy to cryptocurrency investors, mostly to those who purchased at much higher price than the current levels, before China shut Initial Coin Offerings (ICO). But is the worst over? Can cryptocurrencies reach $5,000 again without China? That's the big question, can Bitcoin reach $5,000 without China.
*Stelian Balta, Founder and Managing Partner of HyperChain Capital, thinks so.
“If we look at Bitcoin or Ethereum from a technology perspective, the bad news is not entirely relevant. Miners will continue to mine and developers will continue to create great code and projects. Digital assets are a global phenomenon and the ecosystem is in its early days.”
Balta further argues that cryptocurrencies can survive and thrive without China. “I am very optimistic regarding the global digital assets market,” he says.“Digital assets can be considered commodities trading on supply and demand. There is fixed supply and increasing demand. China is an important market and the recent news of exchanges shutting down and ICO funding being banned certainly has a short term negative effect on the prices. However, digital assets are a global phenomenon. Huge Internet businesses like Facebook or Google are banned in China and are doing pretty well.”
Bitcoin is currency for the globe which is decentralised and have lower transactional charges, these key features will help Bitcoin to strive even without China. Bitcoin can reach $5000 and go higher but it may take a while, Chinese exchange ban had some negative effect on cryptocurrencies. Cryptocurrency will go out and achieve higher heights as there is no government and bank intervention. Forces of demand and supply determine the value of Bitcoin as supply is fixed with gradual upward shift in demand, the price of Bitcoin will go up.
Cryptocurrency is playing a major role in our financial system.
However, it has since recovered by more than 34 percent and was trading at $4,048.26 per bitcoin Monday afternoon , although this was short of its recent peak of around $4,950.
This indicate a significant improvement and shows that Bitcoin can reach $5000 without China. I urge you all to upvote, comment and resteem. Thanks for your support.
Credit:forbes.com