Why China’s Bitcoin ban is most likely not permanent
We recently saw China make a huge move against Cryptocurrencies. They are in the process of banning Bitcoin from being traded on exchanges. By why would they do this?
Well China is a communist state and they need to have a lot of control over their financial sector. Bitcoin can be harmful to banks as it might take away profits from them simply due to the nature of Blockchain technology. Blockchain technology makes banks less than necessary.
But Bitcoin isn’t large enough to harm big banks yet, right? Most likely not. Bitcoin has a decent sized market cap ($65,018,499,176 at the moment), but that is nothing compared to how much money banks deal with.
So why would China worry so much about Bitcoin? The most likely answer is that China wants to show they have tight control over their financial sector. They want to appease certain communist members and not look like they can’t control a minor threat.
So what does this mean? Well, as the title states, this most likely means the ban on Bitcoin is very temporary. There is no real reason for China to permanently ban Bitcoin as it just seems unnecessary.
So don’t worry, this will all be over soon. China will most likely find a way to regulate Bitcoin and then China will be rapidly buying Bitcoin once again. Even with the threat of the Chinese market entirely leaving the Crypto space, Bitcoin seems to be doing pretty well without them.