The rates of the digital currencies are only likely to suffer from China’s regulation for a short time.
(Photo: Reuters)
That China’s government is critical of cryptocurrencies is not news. The intensity with which the authorities are now monitoring Bitcoin and Co. was also to be expected after the developments of the past few months. The latest push by the central bank to make all cryptocurrency-related transactions illegal is now worrying crypto investors around the world.
Outside of China, however, some of these worries are unfounded – and should soon subside. Of course, Bitcoin and Co. are under short-term pressure when an international superpower questions the legitimacy of crypto currencies and removes the basis of business from the infrastructure in the country, for example the crypto exchanges operating there. For the people and companies that are directly affected on the ground, the effects are real.
But even a great power like China cannot do anything against the existence of cryptocurrencies: If Bitcoin mining is prohibited, the corresponding companies will migrate to other countries.
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