The CEO of BTCC, Bobbly Lee, recently confirmed that The People’s Bank of China implemented their strict bans and regulations in an attempt to force the price Bitcoin to crash. So far, their attempts have failed, as the price of Bitcoin reached record-breaking highs just last week. As Lee addressed his audience during the Money 20/20 conference in Las Vegas this past weekend, he confirmed that not even Satoshi Nakamoto would be capable of causing the price of Bitcoin to drop.
The fact that the People's Bank of China was actively trying to crash the ever-rising price of Bitcoin was met with little surprise. In fact, this has been suspected for quite some time, until Lee confirmed the suspicions. According to Lee, he heard directly from representatives from the People’s Bank of China that they were trying to crash the price of Bitcoin, in an attempt to discourage investors.
Since these attempts have failed, will China keep their bans on cryptocurrencies? Or will reinstate the popular activity? According to Lee, this answer depends on your perspective. Lee stated that cryptocurrency trading in China is more concerned about investing and speculative trading, and not payments and spending.
To answer this question, Lee gave his audience a brief overview of China’s history, as it pertains to Bitcoin. He also pointed out surprising coincidences between the rapidly growing Bitcoin market and the People’s Bank of China’s regulation leaks.
Despite these coincidences, Lee stated that China's attempts will have no influences on the price of Bitcoin, in fact, it might only encourage the price to flourish.
Like most investors across the world, Chinese investors are subject to judgment errors, especially when speculating on the future of Bitcoin. According to Lee, the Chinese investors' main mistakes could be attributed to either an indecisiveness on where to invest, not investing enough, immediately selling after a small increase in price, or panic-induced selling after a price drop.
Once the Chinese authorities noticed this pattern, they invoked a ban on cryptocurrency activity, noting that the practice posed too many risks. According to authorities, they were trying to prevent China-based users from losing their assets and savings by investing in a volatile market. In addition, the authorities noted that, as of yet, no one was utilizing cryptocurrencies as a day-to-day payment method.
Lee noted that currently there are no cryptocurrency exchange platforms which are authorized to operate within China. Following the ban, most firms were forced to shut down their business operations within the country, including BTCChina. For now, it seems like the cryptocurrency economy in China is essentially dead, following years of the ambiguous governmental policy.
Despite this, Lee confirmed that Bitcoin will continue to flourish, even without China’s help.
Lee emphasized that unlike fiat currencies whose value depends on external factors such as endorsement, acceptance, and regulation, Bitcoin has an inherent value system which is impenetrable by traditional value determinants. Bitcoin gets its value from inherent failures, limitations, as inconveniences of fiat currencies.
This means that once an economic giant, such as China, wants to stifle Bitcoin, it will counter-intuitively encourage growth instead.
According to Lee, China is unlikely to ban cryptocurrency mining, however, they might tighten regulations to address miners who hi-jack resources to keep their mining operations running.
The fact that the People's Bank of China was actively trying to crash the ever-rising price of Bitcoin was met with little surprise. In fact, this has been suspected for quite some time, until Lee confirmed the suspicions. According to Lee, he heard directly from representatives from the People’s Bank of China that they were trying to crash the price of Bitcoin, in an attempt to discourage investors.
Since these attempts have failed, will China keep their bans on cryptocurrencies? Or will reinstate the popular activity? According to Lee, this answer depends on your perspective. Lee stated that cryptocurrency trading in China is more concerned about investing and speculative trading, and not payments and spending.
To answer this question, Lee gave his audience a brief overview of China’s history, as it pertains to Bitcoin. He also pointed out surprising coincidences between the rapidly growing Bitcoin market and the People’s Bank of China’s regulation leaks.
Despite these coincidences, Lee stated that China's attempts will have no influences on the price of Bitcoin, in fact, it might only encourage the price to flourish.
Like most investors across the world, Chinese investors are subject to judgment errors, especially when speculating on the future of Bitcoin. According to Lee, the Chinese investors' main mistakes could be attributed to either an indecisiveness on where to invest, not investing enough, immediately selling after a small increase in price, or panic-induced selling after a price drop.
Once the Chinese authorities noticed this pattern, they invoked a ban on cryptocurrency activity, noting that the practice posed too many risks. According to authorities, they were trying to prevent China-based users from losing their assets and savings by investing in a volatile market. In addition, the authorities noted that, as of yet, no one was utilizing cryptocurrencies as a day-to-day payment method.
Lee noted that currently there are no cryptocurrency exchange platforms which are authorized to operate within China. Following the ban, most firms were forced to shut down their business operations within the country, including BTCChina. For now, it seems like the cryptocurrency economy in China is essentially dead, following years of the ambiguous governmental policy.
Despite this, Lee confirmed that Bitcoin will continue to flourish, even without China’s help.
Lee emphasized that unlike fiat currencies whose value depends on external factors such as endorsement, acceptance, and regulation, Bitcoin has an inherent value system which is impenetrable by traditional value determinants. Bitcoin gets its value from inherent failures, limitations, as inconveniences of fiat currencies.
This means that once an economic giant, such as China, wants to stifle Bitcoin, it will counter-intuitively encourage growth instead.
According to Lee, China is unlikely to ban cryptocurrency mining, however, they might tighten regulations to address miners who hi-jack resources to keep their mining operations running.