In 2008 afterward the banking crisis, a cardboard blue-blooded “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, account the concepts of a transaction system. Bitcoin was born. Bitcoin acquired the absorption of the apple for its use of blockchain technology and as an another to authorization currencies and commodities. Dubbed the next best technology afterwards the internet, blockchain offered solutions to issues we accept bootless to address, or abandoned over the accomplished few decades. I will not burrow into the abstruse aspect of it but actuality are some online writing and videos that I recommend:
How Bitcoin Works Under the Hood
A affable addition to blockchain technology
Ever admiration how Bitcoin (and added cryptocurrencies) in fact work?
Fast advanced to today, 5th February to be exact, authorities in China accept just apparent a new set of regulations to ban cryptocurrency. The Chinese government accept already done so endure year, but abounding accept baffled through adopted exchanges. It has now enlisted the absolute ‘Great Firewall of China’ to block admission to adopted exchanges in a bid to stop its citizens from accustomed out any cryptocurrency transactions.
To apperceive added about the Chinese government stance, let’s backtrack a brace years aback to 2013 if Bitcoin was accepting acceptance a part of the Chinese citizens and prices were soaring. Concerned with the bulk animation and speculations, the People’s Bank of China and 5 added government ministries appear an official apprehension on December 2013 blue-blooded “Notice on Preventing Banking Accident of Bitcoin” (Link is in Mandarin). Several credibility were highlighted:
1. Due to assorted factors such as bound supply, anonymity and abridgement of a centralized issuer, Bitcoin is not a official bill but a basic article that cannot be acclimated in the accessible market.
2. All banks and banking organizations are not accustomed to action Bitcoin-related banking casework or appoint in trading action accompanying to Bitcoin.
3. All companies and websites that action Bitcoin-related casework are to annals with the all-important government ministries.
4. Due to the anonymity and cross-border appearance of Bitcoin, organizations accouterment Bitcoin-related casework care to apparatus antitoxin measures such as KYC to anticipate money laundering. Any apprehensive action including fraud, bank and money bed-making should to be appear to the authorities.
5. Organizations accouterment Bitcoin-related casework care to brainwash the accessible about Bitcoin and the technology abaft it and not mislead the accessible with misinformation.
In layman’s term, Bitcoin is categorized as a basic article (e.g in-game credits,) that can be bought or awash in its aboriginal anatomy and not to be exchanged with authorization currency. It cannot be authentic as money- something that serves as a average of exchange, a assemblage of accounting, and a abundance of value.
Despite the apprehension accepting anachronous in 2013, it is still accordant with commendations to the Chinese government attitude on Bitcoin and as mentioned, there is no adumbration of the banning Bitcoin and cryptocurrency. Rather, adjustment and apprenticeship about Bitcoin and blockchain will play a role in the Chinese crypto-market.
A agnate apprehension was issued on Jan 2017, afresh emphasizing that Bitcoin is a basic article and not a currency. In September 2017, the bang of antecedent bread offerings (ICOs) led to the publishing of a abstracted apprehension blue-blooded “Notice on Preventing Banking Accident of Issued Tokens”. Soon after, ICOs were banned and Chinese exchanges were advised and eventually closed. (Hindsight is 20/20, they accept fabricated the appropriate accommodation to ban ICOs and stop absurd gambling). Another draft was dealt to China’s cryptocurrency association in January 2018 if mining operations faced austere crackdowns, citation boundless electricity consumption.
While there is no official account on the crackdown of cryptocurrencies, basic controls, actionable activities and aegis of its citizens from banking accident are some of the basic affidavit cited by experts. Indeed, Chinese regulators accept implemented stricter controls such as across abandonment cap and acclimation adopted absolute investment to absolute basic address and ensure calm investments. The anonymity and affluence of cross-border affairs accept aswell fabricated cryptocurrency a admired agency for money bed-making and counterfeit activities.
Since 2011, China has played a acute role in the brief acceleration and abatement of Bitcoin. At its peak, China accounted for over 95% of the all-around Bitcoin trading aggregate and three abode of the mining operations. With regulators dispatch in to ascendancy trading and mining operations, China’s ascendancy has diminished decidedly in barter for stability.
With countries like Korea and India afterward clothing in the crackdown, a adumbration is now casted over the approaching of cryptocurrency. (I shall reiterate my point here: countries are acclimation cryptocurrency, not banning it). After a doubt, we will see added nations accompany in in the advancing months to rein in the agitated crypto-market. Indeed, some affectionate of adjustment was continued overdue. Over the accomplished year, cryptocurrencies are experiencing bulk animation exceptional of and ICOs are accident actually every added day. In 2017, the absolute bazaar assets rose from 18 billion USD in January to an best top of 828 billion USD.
Nonetheless, the Chinese association are in decidedly acceptable alcohol admitting crackdowns. Online and offline communities are blooming (I alone accept abounding absolutely a few contest and visited some of the firms) and blockchain startups are beginning all over China.
Major blockchain firms such as NEO, QTUM and VeChain are accepting huge absorption in the country. Startups like Nebulas, Top Performance Blockchain (HPB) and Bibox are aswell accepting a fair bulk of traction. Even giants such as Alibaba and Tencent are aswell exploring the capabilities of blockchain to enhance their platform. The account goes on and on but you get me; it’s traveling to be HUGGEE!
The Chinese government accept aswell been all-embracing blockchain technology and accept stepped up efforts in contempo years to abutment the conception of a blockchain ecosystem.
In China’s 13th Five-Year Plan (2016-2020), it alleged for the development of able technologies including blockchain and bogus intelligence. It aswell affairs to strengthen analysis on the appliance of fintech in regulation, billow accretion and big data. Even the People’s Bank of China is aswell testing a ancestor blockchain-based agenda currency; however, with it acceptable to be a centralized agenda bill slapped with some encryption technology, its acceptance by the Chinese citizens charcoal to be seen.
The barrage of the Trusted Blockchain Accessible Lab as able-bodied as the China Blockchain Technology and Industry Development Forum by the Ministry of Industry and Information Technology are some of the added initiatives by the Chinese government to abutment the development of blockchain in China.
A contempo address blue-blooded ” China Blockchain Development Address 2018″ (English adaptation in the link) by China Blockchain Analysis Center abundant the development of the blockchain industry in China in 2017 including the assorted measures taken to adapt cryptocurrency in the mainland. In a abstracted section, the address accent the optimistic angle of the blockchain industry and the massive absorption it has accustomed from VCs and the Chinese government in 2017.
In summary, the Chinese government accept apparent a absolute attitude appear blockchain technology admitting its administration on cryptocurrency and mining operations. China wants to ascendancy cryptocurrency, and China will get control. The again enforcements by the regulators were meant to assure its citizens from the banking accident of cryptocurrencies and absolute basic outflow. As of now, it is acknowledged for Chinese citizens to authority cryptocurrencies but they are not accustomed to backpack out any anatomy of transaction; appropriately the ban of exchanges. As the bazaar stabilizes in the advancing months (or years), we will see assuredly see a awakening of the Chinese crypto-market. Blockchain and cryptocurrency appear hand-in-hand (with the barring of clandestine alternation area a badge is unnecessary). Countries appropriately cannot ban cryptocurrency after banning blockchain the alarming technology!
One affair we can all accede on is that blockchain is still at its infancy. Abounding agitative developments awaits us and appropriate now is absolutely the best time to lay the foundation for a blockchain-enabled world.
Last but not least, HODL!