When it comes to digital currencies Bitcoin is certainly the most important of them all. Bitcoin is widely accepted in many countries and many large companies accept this currency. What holds a major key to Bitcoins price? The simple answer is China and today i will explain why its China, and why them controlling the trading and mining also play a major role. Will governments try to control Bitcoin and other currencies?
The Chinese government is going to crack down on the amount of Bitcoin that is being traded to foreign countries from within China. They have had a law that has banned Bitcoin being traded outside of the country Why does this matter so much to the price? China holds over 93% of the trading volume and as we know trade volume brings higher prices. When China threatens any kind of ban traders panic and holders dump Bitcoin causing the price to drop.
China also owns 70% or more of the mining that happens worldwide. If China decided to control Bitcoin it would spell devastation for the market and for Crypto as a industry. What do i think will happen? I think China understands the value of Bitcoin and wants to keep the industry within China to help the economy thrive. Who knows for sure but we will find out in the coming days.
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