Overview of the Bitcoin situation in China
The Chinese government announced that bitcoin exchanges in China would have to closedown, sending the price of bitcoin and the entire cryptocurrency market to a huge decline. The price of bitcoin dropped to $3350 before stabilizing at $3400 while Ethereum dropped to $240. This massive drop wiped billions off the cryptocurrency markets, and is just another bump in a very tumultuous road for cryptocurrencies.
The price of Bitcoins started plummeting after the Chinese announcement, however there is a window by which exchanges have to close; it is not an overnight closure. The Chinese government, while banning exchanges from operating in China, did ban miners in China. This is great news as some of the bigger miners operate out of China and their closure would have led to an even steeper drop in price. China also did not ban the ownership of cryptocurrency, just the trading of it. The worst of the drops seem to be over as there seems to be a slight rebound at the time of this writing. Not only did bitcoin take a hit, but the entire market compromised of hundreds of cryptocurrencies declined, losing a lot of value. Ethereum for example, lost over $50 or about 15% of its value after the announcement. There will eventually be a rebound of the market but it took a huge hit with the Chinese ban.
Buy Bitcoin Now?
It would seem safe to buy once the decline hits the absolute bottom. Many people believe the worst has passed but in the crypto market nothing is certain. There will be a certain amount of chance when investing in the highly volatile market that is cryptocurrency. Bitcoin and other cryptos have proven they can climb way past what they are worth right now. It might take some time, but buying right now will eventually lead to some gains. If not bitcoin, some alt coins such as lite coin have dropped in value making them attractive to buy at the price they are at.
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