When the Chinese government came out with “guidance” that was far more strict on Bitcoin than anyone expected it caused a major price shift. Why then do so many reporters post that under the “volatility of Bitcoin” banner? After all, wouldn’t anything (i.e. the dollar, the stock market etc) crash drastically too if China reversed it’s trade or credit position with the U.S.? If China suddenly came out and said they would only export to us if they were paid in gold what do you think would happen to the dollar? To the price of gold? What would you expect would happen if the Middle East or other oil producing nations suddenly demanded payment in gold?
China had, at first, seemed friendly to Bitcoin. Their reversal was quite unexpected. Yet Bitcoin weathered the onslought, so far, with flying colors. As the world awakens to Bitcoin’s technological breakthroughs and the deficiencies of fiat money and the antiquated credit card system Bitcoin will become so widely used that countries that embrace it will flourish financially. And those that try to prevent it will be left behind in the monetary stone age.
China was reluctant to enter the modern era and has just recently (in the last couple of decades) started to modernize. This reversal by China looks temporay to me and is likely just some leftover ideology from that previous era. China has a lot more to gain from embracing Bitcoin than they have to lose. The whole world does for that matter. China will be back as will a lot of other countries.