Another day, another crash and another Chinese ban. This time, as Reuters spotted, a single report from financial news site Caixin is saying that the Chinese government is considering banning cryptocurrency exchanges in China.
In particular, the report is saying that Chinese citizens won’t be able to use exchanges to buy bitcoins, ethers and more using Chinese yuan, and vice versa.
Cryptocurrencies aren’t banned per se, just exchanges. But do bitcoins have value in China if you can’t exchange them? That’s the main question and the reason why cryptocurrencies are crashing.
more on the link:
https://techcrunch.com/2017/09/08/bitcoin-price-drops-following-report-that-china-is-going-to-shut-down-local-exchanges/
Bitcoin is a cryptocurrency that can be obtained by solving an encrypted algorithm, and issue a limited amount of it. The algorithms become more difficult to solve as you earn more. It is the only currency that is free from manipulation and fabrication, unlike other currencies like Dollars, Yens, Yuans, Pounds, etc. China, where 90% of the exchanges of Bitcoins happen, announced to shut down the local trafficking. The local exchange rate went down to approximately 30% as of now. The bitcoin value reduced by 10%, which is below $4,200.
Some countries in the world are against the fact that the dollar is a world currency (and hence the US gaining quite a profit because of that). China is also one of them, but they banned bitcoin because of its flexibility and the decentralized system. Bitcoin is the only currency that cannot be manipulated in its values with the interests between nations. However, it seems that China is not fond of Bitcoin because they cannot really control it. As of now, the announcement of the Chinese government banning Bitcoin exchanges in the near future has reduced the value of the bullion. We will have to see how much more of an impact it may convey from now on, and even after China officially restricts the Bitcoin trade.
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