By knowing the influence of China in the world of crypto-currencies, it is important to keep an eye on the chinese communist party as it prepares for its 19th national Congress. This congress will be the place where changes and power games between the senior officials will take place. In the midst of all this, the Bitcoin is used as a pawn in the powerful policy.
A congress that is decisive for the future of crypto-currencies in China
Taking place every five years, the party congress serves as the period of election of senior party officials. It is also a forum of confrontation between conservative forces and progressive forces. The first want to preserve the old system of centralized planning and State control over key industries, including banks. The progressive forces, they want to limit the property of the government control over the economy. Of course, the Bitcoin is the new sickle and hammer of the progressive forces. Something similar happened in 2011, during the 18th Congress of the communist party, while Beijing was taking at the time to a corporate structure chinese controversial, namely Variable Interest Entity (VIE). This structure has allowed the chinese companies to list their shares on u.s. exchanges through ” reverse mergers “. However, this has not been successful because the Internet chinese were crushed shortly after. The next congress will start tomorrow, and its outcome could have a huge impact on Bitcoin in the country, either to banish it completely, or to lift the bans.
The Bitcoin will not suffer long of a ban, chinese
When China decided to prohibit, first the ICO, and then the exchange of Bitcoin, there has been a decline in tangible prices that has been felt throughout the world. This has caused the value of the digital currency 5 $ 100 to nearly $ 3 100. However, the Bitcoin is quickly returned and continued to break records. At the same time, the race is not may not be complete, even if the ban was presented as temporary, if the conservatives take over during the convention, there could be a more violent volatility in the face.
Here is a small video reminder of the reasons that prompted China to ban the ICO.
Source : Cointelegraph