A few days back, if you could remember, Bitcoin hit the ATH at $5000. This is a giant amount for something which has no physical presence. Bitcoin, in general cryptocurrencies, were rising greatly since the beginning of the year 2017. Many altcoins even rose by 1000%. This is a ginormous growth rate for any financial instrument. Although, Bitcoin holds great potential for the future, it always remains under pressure of external forces trying to control or regulate it's growth. Governments are trying hard to mitigate cryptocurrency's market somehow by making some protocols which eventually would be imposed on all the crypto exchanges.
The latest news proves that it may come into reality soon enough. China, as per the latest sources, announced that it is banning all the local cryptocurrency exchanges effective immediately. This is a very sudden move by the Chinese government especially now when the Bitcoin is appoximately trading at near it's ATH.
This news messed up the Cryptocurreny Market Capitalisation. As China holds a great percentage of cryptocurrency traders and investors of the whole world, every decision taken by Chinese governments related to the cryptocurrency market does impact heavily. A few days back, China announced that it is banning ICO's effective immediately and at that time too, market suffered and price of Bitcoin fell greatly.
Price of Bitcoin fell to $4105 a week earlier when China announced that it is banning ICO's. Slowly but progressively Bitcoin price started to recover to some extent after that news and now it fell again to $4050.
A Government official told that China could be one of the many countries which can draft some legal pressure on the $155 Billion cryptocurrency market.
Although many people believes that there's nothing certain about China's banning and legal rules. They can change them anytime as the situation stands. Although, China's percentage is great when it comes to cryptocurrency investing but cryptocurrency market as a whole is much larger than China and in the long run, will not be affected by China's cryptocurrency exchanges ban.
Many well known businessmen as well as Investors believes that China must be extra careful to take any minute or major decision related to the cryptocurrency regulation. This market is huge and holds a great potential to increase an economy's GDP or GNP. Instead of Banning, the least China can do is to ask local exchanges for the monthly or yearly report on exchanges turnover so that people can pay taxes as well.
Let's hope this problem is gonna solve as soon as possible. No one wants cryptocurrency to be banned anywhere as it provides a way for common people to come out of their average robotic life.
Thanks for reading ...!!
