Bitcoin’s Bumpy Ride
Bitcoin, one day it’s skyrocketing, then it loses half of it’s value within a few hours. Then it strengthens again, despite critics stating that the bubble had burst. Where will the currency head next?
Buckle up, Buttercup! As a Bitcoin investor, you are in for a bumpy ride. It gives the term Bitcoin gambling a whole new spin.
There are people who believe that the currency could end up rising to close to the $100,000 level, but it does not look like that will be anytime soon.
The focus of governments worldwide is to start clamping down on cryptocurrencies in general. This has been especially bad news for miners and cryptocurrency traders in China. Early in 2018, the Chinese government banned Initial Coin Offerings, a way for startups to raise funds.
This was to be expected – the ICO market has been too unregulated for too long – it’s like the Wild West of the investment world with people playing fast and loose with cryptocurrency.
The shock move was when the Chinese government banned all trading of cryptocurrencies as well. Also, they put forward a plan to start discouraging Bitcoin mining.
Now, considering that around about 81% of Bitcoin’s hash rate is controlled by Chinese miners, this is a very real concern.
Why all the animosity toward Bitcoin by the government? For starters, Bitcoin is largely unregulated. It is not one single organization that can be easily controlled, but a network of nodes spread worldwide. With peer-to-peer transactions, money can be moved globally without needing to notify the authorities.
China, though, has another big problem when it comes to Bitcoin mining. It was seen as the ideal location because power and labor are cheap, and you have easy access to the most advanced computer chips.
The downside is that this process draws a lot of power. This causes problems for a country already battling with carbon emissions. It’s in the government’s interest to shut the miners down for this reason alone.
Interested in learning more about Bitcoin? Read on.