China Bans Bitcoin... Again

Last Friday, China&39s central bank declared that all cryptocurrency transactions are now officially banned, essentially outlawing decentralized cryptocurrencies like Bitcoin (BTC). Digital currency-related commercial operations are unlawful financial activities, according to the People&39s Bank of China. The bank&39s representatives added that cryptocurrencies must be treated as a serious and credible threat regarding the protection of people&39s assets.

China has one of the biggest cryptocurrency marketplaces in the world. Disturbances, disruptions, and political orders have often had a significant impact on the overall price of cryptocurrencies in the past, as this is not the first time that the Chinese government has done something like this and it will most likely also not be the last.

Bitcoin&39s price dropped by a significant margin as a result of the Chinese declaration. It is the latest in China&39s nationwide assault on what it regards as a risky, speculative asset at best, and a means of money laundering at worst.

Another Day, Another Ban

As alluded to earlier, this is not the first time that Bitcoin and other cryptocurrencies, in general, have been prohibited by China, as similar efforts had been made back in 2013, 2017, and 2018 for instance. In fact, the cryptocurrency market had suffered a huge crash earlier on in 2021 thanks to a similar announcement made by the Chinese government not too long ago which had ordered multiple provinces such as Xinjiang and Sichuan to cease all crypto-mining activities. This had also resulted in numerous members of the Chinese cryptocurrency community fleeing to other countries such as Kazakhstan and the United States.

Most recently, however, multiple Chinese agencies and organizations, which also included the central bank as well as the active involvement of the regulators, have all come together in a collaborative effort to completely eliminate cryptocurrency-oriented operations and activities in the country. These include cryptocurrency transactions, trading, buying, selling, and anything else that the government may deem to be linked to the cryptocurrency industry and market.

An Opportunity to Buy?

While it is true that the most recent efforts by the Chinese government may just be the most aggressive to date, it has nonetheless provided an opportunity. There is the age-old saying of &lsquobuy the dip, sell at the tip&rsquo, and countless individuals in the cryptocurrency community have hence taken the recent Chinese announcement with relative gusto as they believe that now is the time to purchase more BTC. This makes sense too as once again, this isn&rsquot the first time that China has adopted an anti-cryptocurrency sentiment and it probably won&rsquot be the last either. Many cryptocurrency enthusiasts, experts, and analysts alike thus believe that no matter what happens from here on out, the cryptocurrency industry can never be truly stopped and so the best thing to do right now would be to buy more cryptocurrency assets. Historical data showing the long-term resilience of Bitcoin strengthens this argument, however, time will be the ultimate deciding factor as to what will actually happen to cryptocurrencies in the future.