Published on September 16th, 2017 | by bitcoin0
Why China’s Crackdown Doesn’t Matter in a Distributed Bitcoin System
In this opinion piece, Hochstein takes a quick look at the current state of the bitcoin markets, finding that just because there’s smoke, there’s not necessarily fire.
With all the panic selling following the Chinese government’s renewed crackdown on bitcoin exchanges, it’s important to remember that the country is no longer the trading hub it once was.
But that was at a time when Chinese bitcoin trading accounted for as much as 90% of global volume (as shown in the chart below from CoinDesk’s second-quarter State of Blockchain report.)
This state of affairs persisted until as recently as January of this year:
Since then, however, China’s share of bitcoin trading volume has fallen dramatically.
Of course, there are many variables that influence the price of bitcoin, so there is no guarantee of a speedier recovery.