China Not in Mood to Support BitCoin or Blockchain
Apr 01, 2018 Posted / 1241 Views
As soon as bitcoin touched the all time low of $6600 dipping $70 from its original, things started going downhill for it then and there, added to its China’s no support policy.
After imposing a ban on all the advertisement related to US based cryptos on Social Media and Google, the country is no mood to support blockchain or bitcoin.
Recently the Chinese government scrapped a blockchain funding centre stating the ngoing regulation as the reason. This behaviour of the Chinese government has however prevented the blockchain to reaching $10,000.
Naeem Aslam, chief market analyst with ThinkMarkets in London said that, “I think that the China news caused traders to dump Bitcoin”. It further reinsured China’s negativity and reluctance in using blockchain-related products. China’s future in blockchain is a haze”.
In Feb 2018, the People’s Daily called for a regulation in the domestic market before blockchain is committed to the new digital ledger system it so talks about, by eliminating the middle men. The front page article featured an illustration of someone cooking what looks like golden bitcoins over a hot kettle dangling from three chains.
Because of this the Bitcoin market fell and resulted in its value decreasing from $20,000 to $7,000.
Not only China, but the national bank of Denmark too is banning crypto even though they showed immense support to blockchain. However it is not just bitcoin which is suffering, majority of the bitcoins are in trouble because of this.
In Ethereum, big changes such as rental fees are coming to that blockchain platform and issuer of the ether coin. New database architecture is creating more uncertainty and so ether is down even if a revamp of its blockchain tech is good for the long term.
Same os the case with Ripple, which is down by 2%
Serge Millman, the managing partner of Starta, “This is more fear, uncertainty and doubt. Bottom line seems that there is just too much supply on the market, not in Bitcoin per se, but in all coins. Who needs 1,500 utility coins? No one”.
There are rumours doing round in Japan and China that a top notch investor from Japan is trying to bring up Bitcoin cash to bring down Bitcoin, as BTC is just $680. t would make it unprofitable for Bitcoin mining companies to make any money. They are the owners of computer systems that create all these new Bitcoins being made in transactions. Pushing it down that low might be impossible, but financial markets love a good conspiracy.
If the countries are able to bring in regulations in cryptocurrencies, they might be able to enjoy a good future and can sustain themselves legally and without any restriction as well.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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