It is in highlights since few days, the China’s current Blanket Ban which had put the crypto world in a calm state for some time, but one fact which we all are aware of, is that Altcoins and Bitcoins, both are good at coming back. China’s crypto crackdown of 2021 has turned to be not in a state of compromise. Although this has not been taken seriously by the experts, so it would disappear with time, such a tough approach isn’t good for the traders. As some more news is in highlights about exchanges as CoinSwitchKuber had reported with 30 percent decrease in its weekend transactions, just after the ban had come into being.
But still crypto after all this situation, is going to continue bullish breath and each player involving Bitcoin, Ethereum and more are thought off to remain unaffected. Although the ban had affected last three weeks before such discussion, but Bitcoin has still managed to come over $68000 and is prepared to move ahead for the next year.
China’s Crypto Downfall
China had laid down restrictions on crypto transactions which were dated back in 2013, when PBOC (People’s Bank Of China) had put restrictions on banks for participating as well as sanctioning the transactions of Bitcoin. In addition to this, those payment gateways which allowed crypto transactions were stopped and the speculative trading had also come under curious scanning. Therefore, 2021 had proved to be an year full of restrictions for crypto in China. With this, it had also choose the banning of crypto mining in June and announced in July about the restrictions with the ban on entire activity, inside and outside the borders, but could move with lesser restrictions in case it goes with Chinese interface.
The China based crypto exchanges are clearing off their digital assets, where the global crypto world is going with $3 trillion market cap. This isn’t tragic state for China? The reason why China being stubborn for leaving the crypto base, could be one of the calculated strategy for deflating the crypto prices and afterwards buying the same on dip? But still there is few more to this, as China’s extending crypto ban could be cause of various reasons. The Jarring announcement on September 24, 2021 showed a vigilant move for deducting those things which are transparent and decentralised for China. Another solid reason which China has justified is, major electricity consumption cause of crypto mining as in 2019 China had individually contributed to 75% of Bitcoin’s maximum energy consumption. Although the number had dropped to 41% in 2021 and was estimated to drop down more.
But this justification is not perfectly valid as various eco friendly cryptocurrencies as IOTA, China and Cardano are moving towards fewer energy related demands. In addition to this, newer concept as Green Bitcoin Mining has also come into being, with bringing about suggestions that 56% of global mining energy in Q1, 2021 was gained through renewable sources. Therefore, this has helped China in making electricity specific rising amount to not be of much concern.
So, one can conclude that China’s basic reason behind crypto ban is supported less by facts and more of by the willingness of exerting entire control of financial activities. The timing of this ban is better for China now as its trying for unseating Bitcoin with its government based digital currency (eCNY).
China Crypto Ban Beneficial For India
India could benefit from China crypto ban by way of being progressive. Boosting crypto transactions, NFT adoption, mining and also ICOs would prove to be fruitful for moving peoples attention towards crypto world in the country. Also in coming future one of the top rated tea manufacturer and the top shot film industry personality, Amitabh Bachchan’s NFT would shoot up and this is again a big influence for the individuals of the country towards investments with cryptocurrency.
China’s ban for crypto had benefited both Indian and global investors by providing them with various buying chances.
In addition to all this, such a crackdown had affected the prices of Altcoins, as Litecoin down by consistent margin in September, by availing Indian investors with various buying chances. But this is not that much big issue. But as China has forced stopped working of digital assets in the country, it had indirectly stopped various miners from getting into the country. Therefore focusing them to move to other countries for Bitcoin mining. Also the leading crypto exchanges as Huobi are going to leave the Chinese users, so the Asian crypto would move their preference for India, in lieu to India becoming more accommodative towards miners. For certain crypto exchanges, the sentiment driven price drops and the immediate coming of miners are going to work wonders for such exchanges and for the investors as well so as to enter smoothly for Bitcoins or Altcoins. Therefore, India could effectively become a crypto magnet, thereby providing opportunities to its individuals for employment, financial opportunities and growth.
Effect on Sale
The Bitcoins and the Altcoins had experienced huge selloffs at once China’s thought had came into existence. Very few Indian investors had taken beneficial positions in Altcoins. Particularly sell-off was a manner for liquidating cash reserves and to go with crypto investments. Actually this is much expected in coming months and is also instrumental in building the crypto rebirth.
China’s Action Can’t Bring Crypto Down Eventually
Regulation of cryptocurrency is a difficult task, when it is an innovative one. Also in such a situation where Internet has proved to be existing base for crypto, so China would have to take support of some other things apart from highlighting crypto as illegal. In lieu to this, the scope of growth would be higher in case of Indian exchanges being accessible as crypto can’t be restricted to borders only. In addition to this, the trading and investing bases of crypto (CoinSwitchKuber) are upto getting huge lot of crypto entrants till the end of the year.
The main point to be noticed with the China bans is that although it is putting ban to crypto but still its popularity is going away with the wind round the globe at a rapid rate.
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