China Says Its Crypto Is Ready: How Will This Affect Bitcoin?
For nearly five years, China has been working on its cryptocurrency. For much of the time, the People’s Bank of China has chosen to keep this fact a secret. However, last year reports emerged and the country could not hide it anymore.
Earlier this year when Facebook announced the launch of Libra, the People’s Bank of China directed that the development of the cryptocurrency be ramped up. This directive came in fear that Libra could make the U.S dollar even stronger as it is closely related to it.
Now amid a trade war with the U.S, China says that its cryptocurrency is ready. The launch of this cryptocurrency is not only expected to shake up the country’s financial system but also have a larger impact at existing cryptocurrencies like Bitcoin.
China’s Cryptocurrency; Good Or Bad For Bitcoin?
China has not always embraced cryptocurrencies. The country has some of the strongest regulations against cryptocurrencies and has over the years discouraged citizens from trading them.
The move to launch their own cryptocurrency has then come as a big surprise to many. But is it? By launching their own cryptocurrency, Beijing can minimize the popularity of other cryptocurrencies beyond their control like Bitcoin and advocate for the state-owned crypto.
Although a great ploy, this could easily backfire on them as people interested in crypto fully understand that Bitcoin’s greatest attribute is that it is not influenced by any government. For crypto enthusiasts, Bitcoin remains the only true cryptocurrency.
One undisputed positive outcome with the launch of China’s cryptocurrency will be the wide adoption and exposure of cryptocurrencies. Just as predicted with Libra, these two coins could see cryptocurrencies become mainstream.
Millions if not billions will realize the existence and importance of cryptocurrencies. Over time, despite which is the introductory cryptocurrency, users will begin discovering other decentralized coins like Bitcoin.
Once the government launches the cryptocurrency, there is no denying that Bitcoin will get more popular and just like when Libra was being launched prices will soar.
Bitcoin (BTC) Price Update
Bitcoin is still struggling to rally as it trades below $12K. But, this could change in a couple of days. Goldman Sachs is advising investors to buy the current dip. The investment bank says that Bitcoin trading below $12,916 – $13,971 is a buying opportunity, as long as it does not fall to the $9K low. In the days to come and with continued accumulation, the next bullish wave will be triggered by demand.
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