Chinese cryptocurrency market: current condition
10 November 2017
10 November 2017
China has been the first to impose severe restrictions on ICOs and then on cryptocurrency exchanges. Currently, both activities are officially beyond the law in the Celestial Empire. However, cryptocurrencies have not left China: one still buys and sells bitcoins and altcoins, but investors find work-around for these purposes.
The world was afraid that bitcoin would stop growing or even drop due to the closing of Chinese cryptocurrency exchanges, world’s largest cryptocurrency trading platforms. The forecasts seemed to come true: the event adjusted the bitcoin price from $3000 to $5000. However, later the first cryptocurrency has saved its positions and now its price almost reaches $7500. It is partially caused by the fact that Chinese traders have shifted to the private non-exchange market.
Today, cryptocurrency selling and purchase transactions in China are performed privately, while transaction parties find each other on popular messengers, particularly on Telegram.
Chinese miners are also facing a lot of challenges because of the new regulation. The majority of them should relocate their farms. Miners massively move to hinterland of China: Gansu and Inner Mongolia. There is cheap electric power, so necessary for miners. However, the cryptocurrency market in these regions is still young and does not provide efficient sales of products.
According to Thomas Glucksmann, Top Manager at Gatecoin: “There are a lot of questions about the future of the Chinese miners, given that they still need to pay for staff and operations in renminbi.”
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