Bitcoin price collapses

China wants to regulate cryptocurrency, Bitcoin price collapses(bitcoin lifestyle)

At the end of May 2021, Chinese Vice Premier Liu He and the State Council announced that stricter cryptocurrency regulation was needed to protect the financial system.

According to the official statement, it is essential to "tighten the screws" around Bitcoin drilling and trading, and firmly prevent the transmission of individual risks to the social field.

Following this announcement, the price of Bitcoin fell 8.5% . The move only added to a long drop in BTC that has been rife for several months, with more than 40% of value lost from its peak.

Other cryptocurrencies have also been impacted by the Chinese resolution. The Ethereum and Dogecoin lost 11% of value.

The day before, the United States had also announced its intention to be stricter with regard to people using Bitcoin for "illegal activities including tax evasion". The transfer of cryptocurrencies over $ 10,000 will have to be reported to the Treasury Department, like cash.

However, China's reluctance towards cryptos is linked to other factors. China is the country with the most Bitcoin farms , and mining operations use a lot of energy.

As in all countries, the authorities also fear that Bitcoin and other crypto will be used illicitly . According to the press release, " it is necessary to tighten the screws on illegal financial activities and to punish them severely to keep the stock market, debt and international trade functioning properly ."

In order to avoid the excesses of cryptocurrencies, the Chinese central bank was one of the first in the world to develop its own cryptocurrency based on the yuan.

Iran bans Bitcoin mining to avoid power outages in Tehran
Bitcoin mining can make a lot of money, but it also consumes a lot of energy. A lot of energy, to the point of plunging entire cities into darkness. This is exactly what has happened in Iran, where the capital Tehran and other major cities have faced daily blackouts over the past few months. Some hospitals have even been unable to keep their Covid-19 vaccines cool.

While the authorities initially blamed the shortage of natural gas and the drought, cryptocurrency drilling is now singled out. According to the government, the energy spent on BTC is mainly consumed by illegal miners or without official authorization. These would represent 85% of the drilling carried out in Iran , hosting only 50 officially recognized farms using a total of 209 megawatts.

At the end of May 2021 , Iranian President Hassan Rouhani therefore banned the mining of Bitcoin and other crypto, at least until September 22, 2021. Arrests have taken place, and even legal Bitcoin farms have suffered temporary power cuts. .

Iran is one of the first countries for Bitcoin drilling, and alone accounts for 4.5% of mining carried out in the world between January and April 2021. In comparison, China monopolizes 70% of the drilling.

The success of BTC in Iran is linked to the country allowing its use to pay for imports of goods. A solution to circumvent the American sanctions imposed by the Trump administration ...

El Salvador, the first country to accept Bitcoin as a global currency
While Bitcoin is strongly criticized by several countries including China, others are in favor of them. The Salavador wants to make this cryptocurrency a legal means of payment , just like the US dollar. A world first.

President Nayib Bukele sent his bill to Congress on Wednesday, June 9, 2021. Congress then voted in favor of the bill with an overwhelming majority of 62 out of 84 votes.

According to the official text, " the objective of this law is to regulate Bitcoin as a legal currency of exchange ". The Central American country wants to remove the limits that hold back BTC .

From now on, prices in stores will be able to be displayed in Bitcoin. The taxes can be paid with this cryptomonnaie. Trading in Bitcoin will not be subject to income taxes.

One of the main criticisms of Bitcoin is the high volatility of its value , capable of peaking before collapsing lower than earth. For many experts, this is what keeps it from being a reliable currency. It is not yet clear how El Salvador intends to remedy this problem.

The exchange rate with the US dollar will be "freely determined by the market", still according to the bill. In addition, the text provides for training the population and setting up mechanisms so that they can access Bitcoin transactions.

Unlike Elon Musk's recent escapades or Chinese rulings, this announcement had a positive impact on the price of Bitcoin. This increased by 5% shortly after the vote . https://bitcoinlifestyle.app