Is it possible that cryptocurrencies began to die, are we near the end? We invite you to continue reading our blog to be updated.
Some time ago, the People’s Bank of China ruled that it criminalizes any practice that involves cryptocurrencies. As a consequence, Bitcoin suffered its biggest drop, around 28% this year, when miners decided to migrate away from China because of excessive controls.
As reported by Cointelegraph, the memorandum issued by the bank mentioned above ,forced the closure of all mining operations and exchanges that remained in the country.
However, it is important to note that although Bitcoin’s decline was steep, it is still standing today. And it is slowly recovering.
Sasha Ghebali, director of business and strategy at cryptocurrency data provider, The Tie, declared in a note to Cointelegraph:
“Many miners have been buying hash power from Chinese miners after the ban, which together with increased US institutional mining activity may explain the recovery of the hash rate.”
China on the other hand, is promoting its own digital currency from its Central Bank, seeking not to eradicate cryptocurrencies but to monopolize them, forcing its adoption.
In conclusion, we can affirm that cryptocurrencies are here to stay and although there are restrictions, new currencies, prohibitions, among others. The market always rises from the ashes.
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Information source: Cointelegraph https://es.cointelegraph.com/news/bitcoin-s-100k-price-target-returns-as-btc-price-breaks-out-of-bull-pennant