China cryptocurrency ban has wreaked havoc on the market! This weekend the cryptocurrency market began to rebound after it had a rough couple of days. However, that day of green is far gone as China has added more to its country-wide firewall. The South China Morning Post reported this morning that the country has officially blocked all websites related to cryptocurrency both domestic and foreign. Sunday night, a representative from the People’s Bank of China said, “To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs.”
It’s no surprise that the major Chinese bank is helping lead the ban on cryptocurrencies. Many major banks around the world have felt the digital currency threat.
Featured Image: CoinMarketCap
Bitcoin (BTC) has plummeted to two-month low today, currently selling under the $7,000 range. Mostly all of the cryptocurrencies have taken a beating, following this announcement from the Chinese government. Ethereum (ETH) is currently down -19% in 24 hours, trading at $670.57.
The market will remain shaky. Too many new investors are scared easy when they see red, due to inexperience. Many young people have begun investing in cryptocurrencies without any actual “investing” experience. Not many “millennials” actually invest in the stock market unless they come from an economics or financial background. However, the cryptocurrency market has become this new investment vehicle for the inexperienced, which is the foundation of these last few month’s high volatility. These large “sell-offs” have become the norm. Misinterpreted media posts haven’t helped much in this either, as many have made their decisions based off of one post they read.
Governments will continue to try and “manage” cryptocurrency, as many large worldwide financial institutions are feeling the threat. Interesting enough, most have dedicated entire tasks forces to implement blockchain technology into their current systems. Some have even gone as far as teaming up with the project’s Ripple (XRP) and Stellar (XLM), to help with their overseas transactions.
I anticipate most individuals wanting to invest in’ the country of China will use VPN’s, to bypass the firewalls. A common technique used when trying to get around government firewalls.
Hold tight folks; the bumpy ride has no end in sight.
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