There has been a sharp fall in the price of bitcoin and other cryptocurrencies after
China ban financial institutions and payment platforms from providing services
related to cryptocurrency transactions and warmed of investors of cryptocurrency
trading. Although bitcoin was dropping in price this month after Elon Musk CEO of
tech giant Tesla said that the company would no longer accept bitcoin as a means of
payment because of bitcoin’s mining environmental impact, but the cryptocurrency
ban by China only made it worse.
The price of bitcoin, the world’s leading cryptocurrency plunged for the first time in
three months below $4,000 early hours on Wednesday following the announcement
of the ban on cryptocurrency in China. Nevertheless this is not the first attempt by
Chinese government to clamp down on cryptocurrency transactions in China. In
2017 authorities also banned initial coin offerings, a way for tech startups to raise
money by issuing crypto tokens to the public.
However, ban on cryptocurrency in China which has seen to the fall in price of
bitcoin has also affected other cryptocurrency including Ethereum, which was down
below $2,000 dollars per coin after trading above $3,000 a day before the announcement and Dodge coin lost more than 24 percent of it’s value including shiba coin which newly gained popularity amongst other coins all plunged with the fall of bitcoin.
What is the future of cryptocurrency?
Although members of the public can hold or trade cryptocurrencies, but major exchanges in mainland China have been shut down. Still the ban on cryptocurrency, shows that China isn’t changing it’s stance on cryptocurrency, if you could recall the central bank of Nigeria placed a ban of cryptocurrency transactions earlier this year after releasing a circular addressed to banks on 5th February which prohibits financial institutions from providing services related to cryptocurrency transactions, with the recent developments which is worrisome amongst those trading bitcoin in Nigeria many wonder what the future holds for bitcoin and other cryptocurrencies.
Will the price of bitcoin and other cryptocurrency bounce back after this fall? Well, prices of cryptocurrency have skyrocketed and plummeted in time past, and trading bounced back like nothing happened, but the recent developments have sent the cryptocurrency market on a wide ride and only time will tell what the future holds.