Fear Not, China Is Not Banning Cryptocurrency

In 2008 following the monetary crisis, a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” become posted, detailing the ideas of a charge machine. Bitcoin become born. Bitcoin won the attention of the world for its use of blockchain era and as an alternative to fiat currencies and commodities. Dubbed the next quality generation after the net, blockchain offered answers to issues we have didn’t cope with, or disregarded over the last few a long time. I will not delve into the technical thing of it however here are some articles and movies that I recommend:

How Bitcoin Works Under the Hood

A gentle introduction to blockchain generation

Ever wonder how Bitcoin (and other cryptocurrencies) sincerely work?

Fast ahead to nowadays, 5th February to be specific, government in China have simply unveiled a new set of regulations to ban cryptocurrency. The Chinese authorities have already finished so ultimate yr, but many have circumvented thru overseas exchanges. It has now enlisted the almighty ‘Great Firewall of China’ to block get admission to to overseas exchanges in a bid to stop its citizens from wearing out any cryptocurrency transactions.

To recognize more approximately the Chinese government stance, permit’s back down a pair years again to 2013 when Bitcoin was gaining recognition among the Chinese residents and prices had been soaring. Concerned with the fee volatility and speculations, the People’s Bank of China and five different authorities ministries posted an respectable be aware on December 2013 titled “Notice on Preventing Financial Risk of Bitcoin” (Link is in Mandarin). Several points were highlighted:

1. Due to various factors which include restricted deliver, anonymity and lack of a centralized company, Bitcoin is not a professional currency but a digital commodity that can’t be used inside the open market.

2. All banks and financial companies are not allowed to provide Bitcoin-related economic offerings or interact in buying and selling hobby associated with Bitcoin.

3. All corporations and websites that provide Bitcoin-related offerings are to check in with the vital government ministries.