China effect on Cryptocurrency
August 14, 2018 6:27 am,
Over the past 3 weeks, rumors that China government was cracking down on the ICO’s has led the markets tanking. It also states that the government has forced the exchange to come to a halt.
The Chinese government has made it clear that they are not in favor of the currency due to its complete instability but are for the development of Blockchain technology. Officials are now in the process to block domestic access to online platforms and mobile apps that offer exchange-like services for currencies. Domestic stock exchanges, meanwhile, are scrutinizing companies that promote themselves as Blockchain-related to boost their shares. This has led to the Chinese entrepreneurs to experiment with this technology. Maximum of the Blockchain related patents have come from China itself.
The government has banned ICO, crypt trading as well as tracked down mining. Though this has happened, the regulators have proved to play a major role in shaping the future of the digital market and also in the stratospheric rise of Bitcoin and others.
But, all this does not imply that China is anti – cryptocurrency since they are having trials for their own prototype planning to make The People’s Bank of China, the 1st central bank to issue digital money.
How has all this affected the rest of the world?
This has mainly led to the reshaping of the Bitcoin mining and increased its costs. The Bitcoin or digital currency mining industry primarily settled in China because of the cheap power, chip-making factories, and cheap labor. As a result of the ban, they may have to find new places.
China’s two largest Bitcoin-mining industry, Bitmain is setting up a headquarters in Singapore and now has operations in the U.S. and Canada. The No.3 is also opening in Canada. The exchange services in the country are also leaving, and plan to set up counters in Hong Kong or operating out of Singapore or South Korea.
At 1st the prices were not really affected, but over time the analysts say that the rising tide of regulation has weighed down on currency and this can explain the loss at the start of 2018.