Chinese Currency Devalued By Rise Of Bitcoin?
The Bitcoin has seen a volatile year till now and its value rose by 20% in the first trading week in 2017 to a peak position of $1,161 per virtual coin. However, its value has declined by more than one-third in the period of seven days before again rising to nearly $1,200 on Friday.
According to the traders, the main reason for this fluctuation is the China where the central bank has made the domestic bitcoins exchanges on the notice recently that they required performing more for controlling the foreign exchanges. The country is looking to curb the use of the bitcoin for circumventing the rules that limit the amount of the money.
In the present week, the total BTC that is bought by using the Chinese Yuan has reduced to less than 5% because of the efforts by the domestic exchanges for cooling the trading activity of the bitcoin with a ban of one month for making withdrawals and per transaction fee. It is expected by the traders that the central bank of China will impose the regulations on the trading of the local bitcoin that helps in declining its price.
With very low bitcoin trading transactions from the land of China, what is the reason for bouncing back of the currency to this peak?
There are some that have to do with the traders for betting the US Securities and Exchange Commission for approval at least three proposed exchange-traded funds that are based on the bitcoins trading prior to the deadline of 11 March. Bitcoins have also become an option for a safe investment like the US Treasury bonds or gold.
It doesn’t matter what is the case of the quick rebound of the bitcoin from the scare of China. It can be a sign that the digital currency has become more mainstream as per the Burniske.