Due to China’s impact on Bitcoin, it is essential to keep an eye on the communist nation as they equipment up for their nineteenth national Congress of the Communist party of China. This shape of elections for the totalitarian party will see a few reshuffling and power performs among top officials who both fall at the conservative side, or the innovative. Within the center is Bitcoin, and it is getting used as an effective political pawn.
Held each 5 years, the party congress elects the party’s top officials. It is a forum for a showdown among the conservative forces of the party, which need to maintain the old system of important planning and state possession and manage of key industries and the revolutionary forces, which need to restrict government possession and control of the economic system.
Understandably then Bitcoin is the new hammer and sickle of the revolutionary group even as it flies within the face of the conservative traditionalists. This, many believed, is why it was banned in the first area, as a power play by the traditionalists. Something comparable appeared to occur again in 2011, on the 18th Congress, as Beijing went after a controversial China’s corporate structure, Variable Interest Entity.
This shape had allowed China’s organizations to list their shares in United States exchanges via reverse mergers. All in all, this was not successful as China’s internet stocks crashed quickly after. The congress starts on October 18, and its outcome could have a big bearing on Bitcoin in the country whether dooming it completely, or maybe lifting the regulatory bans.
While China decided to prohibit initial coin offerings, after which exchanges, there was a tangible drop in price that was felt internationally. This dispatched the cryptocurrency skidding from $5100 down to nearly to $3100. Bitcoin’s rate has recovered, and actually reached new record highs. At the same time, the ride may not be over, for even though the ban was touted as transient, if the conservatives get the upper hand within the conference there could be more violent volatility to be faced.