Bitcoin May Get A Boost From China
Bitcoin has been on an incredible rollercoaster ride over the last 18 months or so. In January of 2017 it topped $1,000 in value for the first time; only a little under a year ago we celebrated a $4,000 value; and by late November and early December of 2017 it was hovering around $19,000. It was, over the course of almost an entire year, a meteoric rise. However, as you likely know if you are reading this, bitcoin plummeted soon thereafter.
As of the time of this writing bitcoin is a little bit above $7,400, a price that would have looked wonderful a year ago but now seems somewhat disappointing. Furthermore, it has been proven time and time again that this innovative cryptocurrency is virtually impossible to project with any degree of accuracy. With that said, however, recent word out of China could be good news for those who would like to see another bitcoin boost. Basically, it all comes down to regulation.
Broadly speaking, bitcoin is difficult to regulate and has been since its inception. Its decentralized nature keeps it from being controlled by any one bank or government. And frankly its propensity to rise and drop in sharp and dramatic ways would make it difficult for any one institution to control in the first place. That said, certain influential countries and economies around the world have attempted to curb the bitcoin market in various ways. That might mean anything from a state recommendation that citizens not buy cryptocurrency to fully realized laws preventing cryptocurrency trades.
For the most part we have only seen these types of restrictions in a few smaller countries. However, for the past two years or so some of the most influential countries in Asia have also gone back and forth on bitcoin regulations. Most notably, China and Japan have shifted their outlooks and policies on a few different occasions, sometimes with an apparent effect on the world bitcoin market. Now, however, China appears to be on the verge of taking a position that would be more favorable to cryptocurrency enthusiasts.
Said one recent write-up on this subject, bitcoin is proving to be an innovation China cannot say no to. The article points out that China has more or less tried to reject or dismiss the notion of bitcoin as a game-changing asset or technology, but that this increasingly looks like it won’t be the way forward. A “more fundamental approach,” the article notes, would be to embrace the technology without putting the Chinese financial system at stake.
What this actually means is that Beijing appears to be leaning toward regulation as an alternative to a ban or widespread discouragement. Those hoping to see another big bitcoin boom will sometimes see “regulation” as a dirty word, but in this case it may actually be for the best. Should sweeping regulatory measures come into place in China it would put an end to much of the uncertainty about bitcoin in the Far East, and ultimately allow the cryptocurrency market to grow about as naturally as possible.