Tech

The Chinese Are Struggling To Protect Their Bitcoin


China recently waged a war on the cryptocurrency Bitcoin. The owners of the currency are striving to protect it from this war. especially after reveal China’s central bank released a new document explaining that it will start pursuing cryptocurrencies more while relying on tracking systems for financial transactions based on them.

These decisions resulted in large attempts by the owners of the coins to sell them. This caused the value of Bitcoin to drop by as much as 6% versus 10% for Ethereum due to increased levels of supply versus demand.

Also Read: Bitcoin Drops Amid Fears of China’s Debt Crisis

David Lisbrance has stated that he has started receiving dozens of messages from Chinese Bitcoin owners. This is because they are trying to find solutions to protect their currencies and continue to have access and control over them. While David works as a specialist in redistributing encrypted digital wealth and helping coin owners to transfer them to other countries to avoid taxes and new laws.

Also Read: Dubai Allows Legal Cryptocurrency Trading

And based on the recent decisions, the Chinese authorities began to rely on a new method to confront cryptocurrencies. Which is to freeze them and prevent their owners from disposing of them in any way.

Analysts expect that the government – after freezing the assets – will offer the owners of these currencies to exchange them for e-yuan in exchange for a fixed exchange rate. If this happens, the owners of cryptocurrencies will lose a lot of their value.

Also Read: Bitcoin Miners Buying Power Plants for Mining

The Chinese Are Struggling To Protect Bitcoin

The Bank of China also stated that all financial transactions based on cryptocurrency are illegal. This also includes their use in international services.

It is reported that the Chinese government will start trying to shut down cryptocurrency platforms that the Chinese deal with. Perhaps the most prominent of them is the OKEx platform, which allows them to exchange real currencies into cryptocurrencies.

It is reported that China’s efforts to ban Bitcoin are not recent. This is where the government has banned the use of Bitcoin for online payments since 2013. Then, in 2017, it banned the sale of cryptocurrencies. She returned the ball in 2019.

Also Read: China’s Central Bank Bans Cryptocurrency Transactions

But things have become more dangerous for cryptocurrency owners in the current year 2021. That’s when China banned cryptocurrency mining entirely, which resulted in the disappearance of half of the global mining network.

Over time, things become more difficult and difficult for miners and owners of cryptocurrency inside China, specifically Bitcoin owners. This is happening while a large number of countries around the world have legalized the use of Bitcoin, including El Salvador, which is now dealing with it officially.

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