China has banned Bitcoin multiple times, but Bitcoin has always managed to bounce back. The first ban was in 2013, when the People’s Bank of China (PBOC) issued a notice prohibiting financial institutions from using or trading Bitcoin. The PBOC also warned against the risks of Bitcoin investing, citing its volatility and the potential for fraud.
Bitcoin Moved Ahead Despite The Bans
Despite the ban, Bitcoin continued to grow in popularity in China. In 2017, China was responsible for some notable percentage of global Bitcoin trading volume. However, the Chinese government continued to crack down on Bitcoin, and in 2019, it banned all Bitcoin exchanges and mining operations.
Despite these bans, Bitcoin has continued to grow in popularity and value. In 2021, Bitcoin’s price reached an all-time high of nearly $69,000. While the price has since fallen, Bitcoin is still worth significantly more than it was before China’s bans.
So, how has Bitcoin managed to ignore the FUD and bounce back? There are a few reasons.
- First, Bitcoin is decentralized. This means that it is not controlled by any government or financial institution. This makes it difficult for China or any other government to ban Bitcoin outright.
- Second, Bitcoin is a global asset. It can be bought and sold anywhere in the world, regardless of government regulations. This makes it difficult for China to suppress Bitcoin’s price.
- Third, Bitcoin is a scarce asset. There can only ever be 21 million bitcoins in existence. This scarcity makes Bitcoin attractive to investors, as it means that its value is likely to increase over time.
The Chinese government’s bans on Bitcoin have had some negative impact on the Bitcoin market. For example, the bans led to a decrease in Bitcoin trading volume in China. However, the bans have also had some positive effects. For example, the bans have made Bitcoin more decentralized and resilient to government interference.
Overall, Bitcoin has managed to ignore the FUD and bounce back after each of China’s bans. This is because Bitcoin is decentralized, global, and scarce. Bitcoin’s resilience to China’s bans is a testament to its strength and potential as an asset.
How Bitcoin’s Price Has Performed After China’s Bans
- After the 2013 ban, Bitcoin’s price fell by about 50%. However, it recovered within a few months and went on to reach an all-time high in 2017.
- After the 2019 ban, Bitcoin’s price fell by about 30%. However, it recovered within a few months and went on to reach another all-time high in 2021.
These price movements suggest that Bitcoin has become more resilient to China’s bans over time. This is likely due to the increasing popularity of Bitcoin and the growing number of investors who believe in its long-term potential.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.