July 8, 2021

Will Bitcoin’s future be affected by China’s ban?

Investors in the Asian country have had to buy stablecoins so that their funds are not affected by the situation.

Since China began cracking down on Bitcoin, many, many investors have sold the funds they had in the cryptocurrency and in each of these “cycles of desperation” it has fallen in price.

Last June 22, the news that China’s six major banks and Alipay are banned from accepting or using cryptocurrencies. The banks will suspend the accounts of people doing business with cryptocurrencies.

Important facts:

  • China’s veto had already been announced since 2013
  • Electricity is very cheap there, so the miners had a lot of benefits.
  • A crackdown on miners has begun in China.
  • Large mining groups have ceased operations in China.

Bitcoin mining was the other area affected. China has closed mining farms in Xinjiang and Inner Mongolia, also in Yunnan and Sichuan, what these provinces have in common is that their main energy sources are renewable and environmentally friendly.

China’s influence over Bitcoin

  • Chinese investors play an important role in the crypto market.
  • China accounts for more than 75% of the mining market.
  • Many fear that China’s power could control the supply of Bitcoin.

China’s crackdown is quite a blow against the cryptocurrency market. Many traders in China are desperately trading their Bitcoins for fear of a major crackdown.

Mining farms are closed and Chinese miners have been looking to relocate to continue mining, this has caused the Bitcoin hash rate to be involved in a decline.

Many investors prefer to take losses at this time by ceasing to use their bitcoins rather than taking losses in the future, and many companies are increasing their investment in mining in order to attack the Chinese dominance.

China ban may be good news

  • The market will no longer respond to news from China as violently.
  • Something similar to what is happening with Elon Musk, fewer and fewer investors are paying attention to his tweets.
  • Decentralization benefits from this whole issue

Bitcoin’s decline also affects other cryptocurrencies such as Ethereum and Dogecoin which also drop in price every time China makes one of its dreaded announcements.

The influence of many factors such as the aforementioned Elon Musk has caused many investors to prepare for any news and give it real importance.

In China, investors are not protected from any kind of loss involving cryptocurrencies, which is why many allegedly profitable exchanges have appeared on search engines in the Asian country.

In conclusion, cryptocurrencies have an immense future and that causes sensations in the governments of the world, some try to receive them well and others want to ban them as China has done. 

If you want to learn more about cryptocurrencies and learn about the most promising projects in advance, join our Telegram channel for free.

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

Join us

Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.

Latest posts author AltSignals Team

Latest posts from the category Bitcoin