Crypto-currencies will go underground

Traders believe that the industry will prosper, despite Chinese bans

China has struck at crypto-currency repression, but this will not stop the bitocain advocates. On the contrary, they are banned by bans, forcing them to search with excitement for workarounds. Hundreds of traders and bitcoin supporters, as well as experts in the field of block-technology, met in Hong Kong on Wednesday for a two-day conference, which was originally planned to be held in Beijing. The organizer of the conference, Bitkan, decided to postpone the venue in order to avoid the “cancellation of the event” due to the tough position of the Chinese regulators.

“We are outcasts here,” said John McAfee, a bitcoin supporter and creator of the antivirus of the same name. The ex-fugitive himself, involved in a major scandal in Belize, McAfee believes that the Chinese government with its own hands encourages the industry to active development. He is confident that the industry will continue to grow and prosper. “Creators, developers and innovators will find workarounds, which has always been the case,” he added.

The Chinese authorities decided to introduce a comprehensive ban on all channels for buying or selling virtual currency in the country. Governments of different countries have already tried to take control of the crypto currency created by an unknown programmer almost ten years ago as an alternative to official money. However, the Chinese plan is the toughest. It extends not only to the commercial bitcoins of the stock exchange.
The cost of virtual currencies – among which bitcoin is the largest – has risen sharply, and with it the volume of trade. Regulators, looking at all this, came to the conclusion that this market has turned into a speculative bubble. Now one bitcoin is given about 3900 dollars, which is 500% higher than a year ago. Earlier this month, the currency updated historical highs at the level of 4919. Chapter J.P. Morgan Chase Jimmy Daymon called bitcoin “cheating”. The founder of the largest hedge fund Bridgewater, Ray Dalio earlier this week also compared this crypto currency with a bubble.

Earlier, the bulk of transactions with Bitcoin was carried out in China, but now the share of the Celestial Empire is no more than 15%. Leon Liu, executive director and co-founder of Bitkan, noted that Chinese investors can still trade bitcoin directly with each other, using messaging services for this. “You go to WeChat, meet someone there, chat, buy and sell, transfer money and nobody knows why you did it.” Now it’s everywhere, “he explained.
Despite trade restrictions, China remains the main producer of coins: according to bitcoinity.org, about two-thirds of all bitcoins in the world pass here. Traders and operators of bitcoin platforms on Wednesday confirmed that the Chinese miners were allowed to work further. Jihan Wu, executive director of the major manufacturer of the main equipment Bitmain Technologies Ltd, said that he did not know anything about Beijing’s official position on mining, and all the information available on this account is nothing more than rumors and speculation. “Bitcoin will not come to an end, even if the miners are faced with tight control by the state, but prices will certainly collapse,” Wu added. Han Feng, co-founder of the Elastos operating system on the basis of the block system, believes that, in the face of restrictions and cancellation of subsidies for electricity, the miners will begin to withdraw their energy-intensive operations abroad. “Previously, they received subsidies from the state for electricity, but I’m afraid that they will now cover these benefits,” he said.

McAfee on Wednesday compared the tightening of regulation in China with a ban in the US, where the government from 1920 to 1933 introduced a national ban on alcohol. People did not drink less, but all this business went into a criminal, shady environment. “The same will happen with the crypto currency, you’ll see,” he said.

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