During the last couple of months, members of the bitcoin community have been direct witnesses to the evolution of the bitcoin price, based on financial events going on in China. In fact, the digital currency and China’s economy have been linked numerous times in the past, but recent reports indicate that this link can influence price, but it cannot make or break Bitcoin.
The recent price behaviour of the digital currency has sparked numerous question, regarding whether bitcoin has the potential of surviving in case it loses its support from China, which makes up a high percentage of bitcoin traders and mining at this moment in time. These questions have arrived especially after numerous reports stating that the Chinese government is tinkering with the idea of adopting a strict regulatory framework for the digital currency.
However, in a recent press conference, the organizer of the popular Beijing Bitcoin Meetup, Neil Woodfine, has stated that China’s dominance in bitcoin mining and trading does exercise a big influence, yet, it does not translate to control. He continued by mentioning that: “We can only speculate. The truth is, China’s crypto-market seems rapidly developing, nobody can deny that. However, Bitcoin is a global currency, not dependent on the single economy, no matter how powerful it is. China’s willingness to put effort on Bitcoin trading should encourage other countries to adapt their legislature in favour of a more flexible approach to cryptocurrencies. We have to evolve our business and move past the early 2000s decade. It doesn’t mean opening doors completely and not setting any meaningful rules. We have to acknowledge cryptocurrencies as an equal alternative to fiats.”
Based on this, it is important to be aware of the fact that the value of Bitcoin and its importance in areas throughout the world is too high for it to completely disappear in case trading and mining in China goes bust. However, the likelihood of that happening is also fairly low, considering the fact that China is only planning to regulate the digital currency, rather than outright banning it for good, which is great news for its value.
Indeed, the implementation of strict legislative framework in the Asian country will like play a big influence on the price for a good period of time, yet other regions will be quick in supplying the missing mining power. There will be issues, such as slower transactions and higher miner fees, but China falling, will certainly not break bitcoin for good. Regardless, we don’t want either of the events ever taking place in the future, as this would really put bitcoin to the test.
Based on everything that has been outlined so far, do you think that a potential Chinese-exit from bitcoin trading and mining could break the digital currency? Why or why not? Let us know your thoughts in the comment section below.