Bitcoin Is Moving on Up
The news comes at a time when bitcoin seems to be enjoying new bullish trends. Since early April, the currency has been expanding in price and is currently trading for over $5,200. This is a massive difference from where bitcoin had fallen last November. For roughly five months, the cryptocurrency was trading between the mid and high $3,000 ranges, and many enthusiasts were seemingly giving up hope that anything would change quickly.
Thankfully, that change occurred in less than half-a-year, though there are still plenty of improvements to be made. Bitcoin, as we all remember, was trading for about $20,000 a little over a year ago, and it could take time for the currency to reach that point again.
For now, however, many investors are taking in the new sights of bitcoin’s latest price explosion and enjoying the larger trading window. A dark cloud has appeared, however, in the form of China’s potential attempts to ban bitcoin mining.
Yesterday, Live Bitcoin News reported on the National Development and Reform Commission (NDRC) and its latest document of all things it will consider banning in the coming years thanks to the alleged risks they pose to the environment. Bitcoin mining sat on that list, and many are wondering if this could potentially have a negative effect on bitcoin’s bullish behavior.
The good news is that many analysts are predicting the opposite of what average traders might think. At first glance, it seems like a ban on cryptocurrency mining would potentially lower the price of bitcoin, but experts say it’s likely to have the opposite effect.
Mati Greenspan – a senior analyst at cryptocurrency exchange e-Toro – says:
It’s more likely to push bitcoin prices up than down. The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price.
China is suggesting the ban out of its belief that bitcoin mining has significantly “wasted resources.” It says that computer networks dedicated to mining operations spend hours upon hours “crunching” blockchain numbers. This crunching serves little to no purpose and uses vast amounts of energy and paper. The only reason it allegedly occurs is because people believe the process has value, though the NDRC claims otherwise.
The Currency Could Remain Unchanged
The move could potentially bring massive changes to one of China’s largest enterprises. More than half of the crypto arena’s newest coins are mined in China, and it’s difficult to say where mining companies would go.
Just last year, bitcoin recorded its 300 millionth transaction. The currency remains popular despite its consistent price changes, which means a bitcoin mining ban likely wouldn’t deter additional popularity.