{"id":344097,"date":"2021-09-24T18:19:24","date_gmt":"2021-09-24T15:19:24","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/china-bans-bitcoin-and-all-cryptocurrency\/"},"modified":"2021-09-24T18:19:24","modified_gmt":"2021-09-24T15:19:24","slug":"china-bans-bitcoin-and-all-cryptocurrency","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/china-bans-bitcoin-and-all-cryptocurrency\/","title":{"rendered":"#China Bans Bitcoin and All Cryptocurrency"},"content":{"rendered":"

“#China Bans Bitcoin and All Cryptocurrency”<\/strong><\/p>\n

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Lukas Gojda\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n

The Chinese government is cracking down on Bitcoin and other cryptocurrencies. In a big step forward in its anti-crypto plans, which started in May, the\u00a0People\u2019s Bank of China has decided that\u00a0crypto transactions are illegal and called for a formal ban of all Bitcoin and crypto-related transactions.<\/p>\n

The People\u2019s Bank of China says it\u2019s concerned about national security and the safety of residents\u2019 assets. Bloomberg<\/a> reports that the country\u2019s bank says that cryptocurrency isn\u2019t a fiat currency, which means it isn\u2019t a government-issued currency and is not backed by a commodity.<\/p>\n

China is also looking to\u00a0root out the mining of digital assets.\u00a0Chinese officials are targeting crypto because of its possible ties to fraud, money laundering, and excessive energy usage. The country has a very concentration of the world\u2019s crypto miners, which are using a considerable amount of energy.\u00a0China is already facing a severe power crisis, and excessive mining isn\u2019t helping.<\/p>\n

As you might expect, the price of Bitcoin and other cryptocurrencies were harmed by the announcement, with Bitcoin falling about\u00a08%, down to just over $41,000. It has since rebounded a little and is now selling for closer to $42,000, though. Etherium also dropped, and is now selling for around $2,800, a 7.6% decrease. Even Dogecoin fell by more than 6% after the news<\/a> broke.<\/p>\n

Whether it\u2019ll have a long-term effect on the price remains to be seen, but some experts think it\u2019ll just be temporary.\u00a0\u201cChina\u2019s ban on all cryptocurrency trading activity will have some short-term impact on the currency\u2019s valuation, but long-term implications are likely to be muted,\u201d said Ganesh Viswanath Natraj, an assistant professor of finance at Warwick Business School.<\/p>\n<\/div>\n