Bitcoin is an exceedingly valuable cryptocurrency. Recently bitcoin halted the value of $65000, the highest of bitcoin till now. Moreover, Bitcoin has acquired an extreme user base in a nominal range of time as the trading volume of bitcoin per day is more than 90 billion; all the more market cap of bitcoin was nearly 1 trillion before the cryptocurrency crash.
However, recently the cryptocurrency market crashed, and the value of bitcoin plummeted in an extreme manner as bitcoin torched its lowest price of this explicit year at the instance of the cryptocurrency market crash. The prominent reason behind the cryptocurrency market is underlined as the china announcement of cryptocurrency crackdown, which majorly focused on banning bitcoin and other cryptocurrencies in the country.
The cryptocurrency crackdown devastated the utter cryptocurrency industry at the very first glance, however subsequent to few progressions, the cryptocurrency market was headed on a restoration route, and robust sources started to claim that the cryptocurrency market crash was not all that bad. Here are some of the reasons why the bitcoin crackdown was not all that bad; let’s have a look.
What Was Bitcoin Ban All About?
As mentioned ahead on the 18th of May, Chinese higher authorities announced a cryptocurrency crackdown in the country, and the cryptocurrency crackdown primarily focused on banning bitcoin. You can check out this bitcoin trading app for getting considerable results in your bitcoin expedition. All the more, you might be wondering that what the bitcoin ban was all about.
The jointed committee of china recently announced to ban any progression related to privately mined cryptocurrencies which include banning bitcoin mining. All the more, it correspondingly included banning any financial intuition rendering services to the new flanged users.
The crackdown announcement was meant to halt accepting bitcoin as a payment method. The impact of the bitcoin crackdown announcement was notable as the entire cryptocurrency industry experience a crash.
You might be wondering that why there was a bitcoin carnage subsequent to the announcement of Chinese authorities. Bitcoin is a decentralized cryptocurrency, but the value of bitcoin is exceedingly influenced by any sort of legal protocol subjected with bitcoin either in favor or against.
The announcement of the cryptocurrency crackdown in china panicked the cryptocurrency investors of china, and they blazed the trail of selling off their cryptocurrencies; in a nominal time, the news spread like a forest fire, and short term investors all across the globe correspondingly panicked and started to sell off their holdings this is how the cryptocurrency market crashed.
The fact might amaze you that 70% of the investors who extracted their holdings from bitcoin or any other cryptocurrency were short term as bitcoin is still exceedingly profitable to long term investors. Here are some of the reasons why the bitcoin crackdown in china is not that bad.
Bitcoin Is Still Not Bad!
There is a colossal conception revolving around the crypto investors is that bitcoin is banned in China. The fact might amaze you that bitcoin is still not banned in China as per the robust sources. The latest move of china does not include banning bitcoin trading and holding bitcoin as a speculative asset.
Undoubtedly the higher authorities of china have warned the cryptocurrency investors to prohibit bitcoin mining and trading indirectly but still, no rules signal towards banning bitcoin or any other cryptocurrency trading.
Bitcoin is the progression of validating bitcoin transactions by contributing the computing capital. You might be familiar with the fact that China is the utmost robust capital in terms of bitcoin mining as china’s single handle contributes 65% of the hash rate of the entire global bitcoin mining chain.
However, the bitcoin mining ban in China has made bitcoin miners migrate to another country. Some miners are willing to move to Kazakhstan, whereas some of them are willing to move to Texas. The distribution of bitcoin miners across the globe will mitigate the centric domination of china in terms of bitcoin.
Clean mining industry!
The Bitcoin mining industry has impacted the environment to an exceeding extent. The mere energy which is utilized to an exceeding extent by the bitcoin mining industry in China is electricity. Subsequent to the bitcoin mining ban in China, greenhouse gas emissions have been declined in an extreme amount.
These are some of the reasons why the bitcoin crackdown in china was not that all ban.