China Cryptocurrency Blockchain Halving - Will The Monetary Value of a Bitcoin Increase Or Decrease?
China will be the first country to see a big cut in its Bitcoin value. At some point in the future, it is likely that the price of the cryptocurrency in China will be worth a third less than it is currently valued.
China's emergence as the world's largest economy is helping to drive up demand for Bitcoin and Litecoin. However, many Bitcoin enthusiasts remain unconvinced that China's economy will continue to grow at such an accelerated rate.
So far, China has not banned the use of Bitcoins. Yet, the People's Bank of China's moves has resulted in many exchanges within the country closing down. In fact, the Chinese government has recently started to tighten regulations on how financial institutions are going to handle the use of the Bitcoin network.
A slowing economy in China will not make it impossible for China to use the Bitcoin network. The end result will likely be a decrease in the number of businesses accepting the Bitcoin currency as payment. However, it will also provide Bitcoin users with a greater opportunity to buy into the price rise.
Furthermore, it is likely that the Chinese government will go after the money supply rather than crack down on Bitcoin. It is common for governments to devalue their currency. As a result, there could be a rise in the value of the Bitcoin network when the Chinese government devalues its currency.
Indeed, if you look at history, the Chinese government has devalued its currency over again. However, since the Chinese economy is very large, this has not necessarily been a problem. However, as the Chinese economy slows, this will make it harder for the Chinese government to keep devaluing the currency.
One can expect the Chinese government to attempt to control the flow of capital in the country. This should result in a reduction in the purchasing power of the Chinese currency. It is very difficult to predict how quickly the Chinese government will attempt to control the flow of capital in China.
Ultimately, the Blockchain Bitcoin Halving will not have any major impact on the prices of Bitcoin in China. Instead, it will result in a smaller number of businesses accepting the currency and it will be harder for the Chinese government to control the currency. So, the price of Bitcoin in China will remain relatively stable.