China has always been a very important market for the world. It is
THE manufacturing hub. It is also home to most miners of cryptocurrency.
It is believed as per the latest estimates that they have control
of almost 70% of the world's cryptocurrency so far as mining goes. However the
actual number may be even larger now. And this gives us a rough idea how
important China is for the crypto market.
Just a few days back we received the news that China is placing a
ban on bank transactions and mining of cryptocurrency. Now for an economy which
holds almost 70% of the world's crypto mines, this ban comes as a huge blow.
This resulted in panic selling across the world. Which led to a debacle of the
spearhead combo of coins i.e. BTC (Bitcoin) and ETH (Etherium) and
consequently, the other top 20 coins. This bloodshed didn't stop with just the
top 20, it extended to almost all the technical altcoins and even the meme
coins.
And yet it is important to note that this is not the first time
that China has imposed such bans. They have enforced them in 2013 and 2017.
Reports of the crypto world still being functional are well highlighted on many
online portals. Exchanges such as Binance are still accepting Yuan. Miners are
able to mine and convert the same into Yuan. In short, irrespective of the
crackdown, the market is thriving.
But certainly the news of it has dwindled fortunes for many. Such
news creates FUD (Fear, Uncertainty, Doubt). While the whales and the seasoned
veteran traders know such downs are commonplace and that this is a time to buy
and not sell, the casual investor always ends up being the fall guy. They exit
in panic and lose their fortunes. The rich and the experienced just HODL (Hold
On for Dear Life) their crypto assets and wait for the seas to calm.
That's why it is said: dips and crashes happen to separate the
spaghetti hands from the diamond ones.
Which one are you? That's a question you need to be asking
yourself.
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