There are rumors swirling about that China will potentially end its bitcoin ban. If this happens, a serious question will be raised… “What was the darn point?”
China, Make Up Your Mind About Bitcoin!
China made headlines over the summer when it announced that it was going to force all bitcoin miners from its territory following pressure from Beijing to become more carbon neutral. From there, things took an even uglier turn when the country stated it was making all bitcoin and crypto transactions and related activities illegal, meaning people were barred from trading digital assets.
During this time, bitcoin’s price swung around like a pendulum before finally settling in the mid-$40,000 range. To be fair, the currency has ultimately picked itself back up enough to potentially hit a new all-time high just a matter of weeks ago, but if China does indeed go back to accepting BTC, why engage in such hardcore maneuvers if they were only going to last for a short period?
China’s National Development and Reform Commission (NDRC) is opening a window for public comment in which individuals and businesses can discuss and express their comments regarding China’s ongoing list of phased out industries, one of which will be bitcoin mining. Some believe this is being sparked by bitcoin’s sudden ascension to $66,000, which the currency achieved not too long ago. Is China suddenly eager for a little extra money now that Evergrande is in the pit?
The period for public comment will remain open through November 21, at which point the nation’s macroeconomic planning agency will examine the feedback and make a final decision.
Nick Spanos – co-founder of Zap Protocol and an early bitcoin entrepreneur – commented:
China unbanning bitcoin mining would be big news for the crypto space. It would almost certainly act as a significant catalyst for bitcoin’s price and the crypto market. It has been speculated that China has repeatedly banned bitcoin to deliberately lower its price so it can purchase more BTC on the cheap, so I wouldn’t be surprised to see Beijing completely reverse its stance on crypto.
This Just Keeps Happening
While Spanos and others remain confident that the move could potentially bring BTC to new heights, others are not so sure. Charlie Barton – a U.K.-based crypto analyst – stated that the situation likely wouldn’t make bitcoin any stronger given China’s unsteady history with crypto. He says:
The China crypto story recycles itself regularly. China has banned and unbanned crypto in some way, shape or form pretty much every year since 2014. China is one of the largest cryptocurrency markets, and, due to its political structure, the most likely to make a dramatic ruling when it comes to regulating or banning cryptocurrencies. While it’s tempting to believe the seemingly logical narrative that removing restrictions on crypto in the second largest market must be a good thing, ultimately there’s rarely a single narrative that can be pulled out to explain market movements.