However, the country will continue to allow over-the-counter transactions and other services where Chinese Yuan will not be involved.
More than 70% of bitcoin mining has been done in Chinese mining pools, and China has massive mining farms to take advantage of incredibly low electricity prices. With larger firms closing down, Bitcoin production will be severely affected.
Bitcoin prices have continued to drop since it almost touched US$5000 on September 1st this year. Bitcoin has been a trending topic throughout this year when it crossed the $2000 mark for the first time.
Earlier this year, China faced a four-month ban on cryptocurrency trading upon Chinese Bitcoin exchanges and has substantially lost its share in global trading leading to the emergence of countries like the US, Japan, and South Korea.
These factors mean that the cryptocurrency market may take less time to recover from the latest events than from the one that took place in 2013. It took three years for Bitcoin to recover its value after that downfall; then its value dropped from $1,150 to under $500. But at that time, Chinese bitcoin trading accounted for around 90% of global trading volume.
Although China is no longer dominant in Bitcoin trading, the future of Bitcoin and other cryptocurrencies look bleak if other countries start imposing control on unregulated currencies.
What are your thoughts regarding Bitcoin and its future? Share your thoughts in the comments below.