Bitcoin gathered beyond $6,000 again on Sunday afternoon on hopes that Beijing will lift regulations that halted sales of digital currency in China. Ethereum and Litecoin also reunited.
Chinese investors might find themselves in a very uncomfortable position because they might need to trade Bitcoin again in the near future.
Even though the story did not have any confirmation by any official sources, traders did not want to wait.
Anyway, a recommencement of China trading bitcoin will not be a surprise.
China’s ban on Bitcoin and other cryptocurrencies that went into effect on September 30 may be temporary, in order to make faithful communist party members ahead of the upcoming 19th party convention.
China’s government and governments had control over Bitcoins but banks cannot tolerate Bitcoin. It causes a big threat to their very survival.
That is not foreseen in the long term anyway. Bitcoin has the ability to switch China’s currency in everyday transactions, and as a store of worth.
For the time being, however, the size of the Bitcoin market is far too small to be an important danger to the Beijing government and the finance system it owns and manages.
This is a very important risk that Beijing can confront by Bitcoin trading ban now the communist party convention is over.
Investors should be very vigilant in purchasing the digital currency at these levels, as it faces another gust: the end of stress-free money.