China vs Bitcoin: Mining the tea is not afraid
By Prempal Singh
In recent years we have seen the impact of growing Asian market cryptocurrency primarily Bitcoins. That is logical: in the same China Mein about two-thirds of the cue ball because energy in China inexpensive, plus you can not (yet) without any problems on the part of all sorts of controls built on the river farm at Meiningen with its own hydro and operate at the pleasure of watching the growth the number of coins in a purse – and who am Main Man, that it and dancing.
But it’s not just farms. The Chinese consider Bitcoin and some other cryptocurrency as a safe haven. Yuan gradually falls against the dollar, respectively, those with major savings in yuan – poorer. Well, if you invest in Bitcoin with its rapid growth, it is possible not only to preserve but also to increase their funds. So says the Chinese are more recent. But now the authorities have begun to complicate the lives of those who are associated with cryptocurrency, and have not all as easy as it used to be.
Big Brother sees everything
Firstly, the government of the country, or rather, the People’s Bank, banned ICO, walk, even talk about the death penalty for the disobedient. All placements, which take place at the moment, ordered to complete, and the initiators of the ICO, which has been completed, you must return the funds to investors. But just six months Chinese startups raised nearly half a billion US dollars, so now companies are fond of IPOs will have to sweat in order to return all collected.
At the end of this month is expected ban on trading cryptocurrency domestically. The main players are beginning to understand what goes the case and declare the termination of trading. According to rumors, to discuss operations with Bitcoins perekochovyvaet gradually from the local chat WeChat (to it have access to the country’s intelligence agencies) in the Telegram. Confirmation from the authorities about the ban had been received, but the exchange is still reinsured. For example, the BTCC is going to cease trading on 30 September. Perhaps the reason was an informal indication of the authorities, which recognized the Chinese edition, Yicai magazine.
Apart from the aforementioned 2/3 of mining, China is responsible for about a quarter of all transactions related to cryptocurrency (not just Bitcoin), passing through their server.
cryptocurrency resist
But not so bad as it might seem. Yes, initially, after being there all the news about Chinese prohibitions different coins rates fell in a few hours, having fallen by a third, or even more. The same Bitcoin was down almost 3 thousand dollars.
However, on Friday it began the reverse movement of the course, which continued on Saturday and Sunday. Bitcoin few days boosted everything lost before. Why is it the market was able to recover quickly? The fact that the official government ban on trade Bitcoins within the country and have not enrolled. But an informal indication Exchange bypassed easily. The two largest, OKCoin and Huobi, said that the auction will continue, but a couple of Bitcoin / yuan leave. It seems that the Chinese authorities, this situation is quite satisfactory, cryptocurrency care yuan will not influence on the global market, and this effect will be minimal. However, Bitcoin exchange rate against the yuan soared to 50%.
But, even if the exchange will force close, trade Bitcoins in China and abroad will continue. For example, the head of the stock exchange BitMEX Artur Heys (Arthur Hayes)He believes that the Chinese will simply be in this case, trade cryptocurrency “vchornuyu”. Yes, the authorities will try to suppress it in the bud. Yes, it’s dangerous. But the desire to make more money cause market players to continue their business.
In addition, because it is not about banning cryptocurrency. If that ban, so it kriptovalyutnye Exchange. Other countries are unlikely to follow the example of China. The most interesting thing is that the share of Chinese stock exchanges to trade Bitcoins is gradually reduced. Since the beginning of the year this figure fell from 70% to 25%.
Even if China’s ban officially bids cryptocurrency long the ban will not continue. As mentioned above, we will start to develop a black market cryptocurrency, and the government of China does not want to do more and the fight against illegal trafficking of other coins and Bitcoin. With regard to the ban ICO – here’s Bank is trying to protect investors’ money, because IPOs tokens anyone and are not regulated, so some companies cheat their investors.