After an increase in values since October, reaching the peak of 738 USD day yesterday, the bitcoin has initiated a descent abrupt to lose almost 6% of its value in a span of just 24 hours.
The reason for the fall is closely related to the alleged discussion of new policies of restrictions by Chinese authorities for transactions with the cryptocurrency, according to alleged Bloomberg sources quoted by other means. Such ad is should to the leak of capitals by employment of Bitcoin as half of evasion for them controls taxes in the country, that currently holds the title of main motor of the mining and transactions made with the currency virtual.
The measures would ban Chinese users to run conversions of bitcoins using platforms outside the country, in addition to regulating the amount permitted for international transfers. This in view of capital flight that accuses the investment that is rampant in the virtual currency by citizens, in order to protect their assets from the devaluation of its currency paper.
An increase in the demand for the cryptocurrency by Chinese investors was the reason for the sustained rise that generated expectations since the end of October. However, China’s Central Bank has embarked on an investigation into the fate of these investment funds, which represent a flow of $ 1.9 trillion without supervision for more than one year.
In addition to this setback for the cryptocurrency are added other variants. Investors kept their distance because of the uncertainty – the price of the bitcoincan vary between three and five times more violently than gold – in addition tothe need to update to supplement new areas of the market.
In these circumstances, the growing popularity of other virtual – Zcash and Monero coins – could represent a strong threat for Bitcoin, whose security and privacy protocols are far from the efficiency that has its competition in terms of confidentiality for execution of transactions.
However, according to the American financial institution Needham Bank the price of the bitcoin could even reach 848 USD due to relative stability of price, increasingly widespread operation adaptation and the promise of new updates.
REAL DANGER? descent-bitcoin
China is currently one of the largest markets in Bitcoin is regards to, so, no doubt, regarding regulatory decisions can affect the ecosystem. However, it is highly likely that this descent split of a rumor: the original source, quoted in Bloomberg, is a screenshot of an article not available online. On the other hand, figures such as Joshua Scigala, CEO of the casa de cambio Vaultoro, have commented on the aura of suspicion that surrounds this story.
Specifically Scigala speaks of a worker friend of the Bitcoin Chinese company BitBank, who indicated that quite recently the first Blockchain World Conferencein the city of Changsha was given with the full backing of the Government, which belies a hostile position towards Bitcoin, that it was even described by the Chairman of the Committee of Supervision and administration of assets Ji Xiaonan, as a technology matures.
Moreover, Tuur Demeester, independent investor and industry consultant, saidthat, basically, this is just an excuse to sell rather than buy before Bitcoin regain its uptrend.