Welcome to Crypto Tips! Why did Bitcoin rise and then fall this week? Let's take a look at the recent activity in China.
Hey everybody! Welcome to Crypto Tips! What is going you on with Bitcoin? Here's a hint.
China, China, China. Many Chinese investors have moved their money from the yuan to Bitcoin, causing the price to spike. It nearly reached $750 two days ago. To avoid the massive devaluation that hit their currency, causing it to reach in all times six-year low.
Then, bam! The Chinese government threatened to implement capital controls against Bitcoin by introducing a cap on all Bitcoin transactions between China and other countries, and forcing some exchanges to only facilitate transactions within China. If you listen to Andreas on Tsunapoulos and if you don't, I highly suggest you check out his YouTube channel. Link will be down below in the description.
According to one of his videos from April of this year, laws lag the application of technology by a decade. Laws are being written right now to regulate the Bitcoin of 2009. It's 2016! So good luck with that.
The bottom line? Bitcoin has been pretty stable this year with a steady incline, and the fact that it nearly reached $750 only two days ago is a really good sign. Thanks for watching Crypto Tips, and if you like what you see here, don't forget to like and subscribe to get your weekly fix of all things crypto.