In 2008 following a financial crisis, a paper was released called “Bitcoin: Peer-to-Peer Electronic Cash System”, which outlines how it pays. Bitcoin was born. Bitcoin attracted international attention due to its use of blockchain technology as well as other means of earning money and other items. Using the technology behind the internet, blockchain has provided answers to issues that we have failed to address, or neglected over the past few decades. I can’t research technology but here are the stories and videos I make:
How Bitcoin Works Under the Hood
A gentle introduction to blockchain technology
Have you ever wondered how Bitcoin (and other cryptocurrencies) really work?
As recently as today, on 5 February to be true, Chinese authorities have just unveiled new rules banning cryptocurrency currency. The Chinese government had already done so last year, but many avoided foreign exchange. It has now registered the Almighty ‘Great Firewall of China’ to block foreign exchange opportunities to prevent its citizens from engaging in any cryptocurrency activity.
To find out more about the Chinese government, let’s go back a few years in 2013 when Bitcoin became popular among Chinese citizens and prices went up. Intrigued by the volatility and price volatility, the People’s Bank of China and five other government agencies published a report in December 2013 entitled “Information on the Prevention of Bitcoin Risk” (Connect with Mandarin). Several points were made:
1. Due to various factors such as shortage of items, anonymity and lack of a central investor, Bitcoin is not a legal currency but something that cannot be used in the market.
2. All banks and financial institutions are not allowed to issue Bitcoin-related transactions or conduct Bitcoin-related transactions.
3. All companies and websites that offer Bitcoin-related services are required to register with the relevant government offices.
4. Due to the uncertainty of Bitcoin limits, organizations that offer Bitcoin-related services should develop security measures such as KYC to prevent money laundering. Any suspicious activity including fraud, gambling and money laundering should be reported to the authorities.
5. Organizations that provide Bitcoin-related services should educate the public about Bitcoin and its expertise without misleading the public with false claims.
In the common era, Bitcoin is distributed as an alternative (e.g., gaming console,) that can be bought or sold as it is made in exchange for fiat currencies. It cannot be interpreted as money- something that acts as an exchange, an accounting component, and a trading platform.
Although this information was published in 2013, it is important in relation to the Chinese government’s perception of Bitcoin and as mentioned, there is no indication that Bitcoin and cryptocurrency are prohibited. Instead, the rules and regulations of Bitcoin and blockchain have participated in the Chinese stock market.
A similar announcement was made on Jan 2017, re-emphasizing that Bitcoin is a value and not a currency. In September 2017, the proliferation of early donations (ICOs) led to the publication of a special information called “Information on the Prevention of Financial Risk of the Released Sign”. Subsequently, the ICOs were banned and the Chinese exchange was investigated and eventually closed. (Hindsight is 20/20, they have made the right decision to ban ICOs and to stop gambling in vain). Another crisis occurred in the Chinese cryptocurrency region in January 2018 when the mines faced many challenges, in terms of the use of multiple cryptocurrencies.
While there is no legal explanation for crypto currencies, money laundering, illegal activities and the protection of its citizens from financial hardship are some of the main reasons cited by experts. Indeed, Chinese authorities have put in place drastic measures such as overseas deportations and the regulation of foreign currency to reduce cash flow and ensure domestic investment flows. The anonymity and the simplicity of the use of the limit have also made cryptocurrency currencies into fraudulent and fraudulent transactions.
Since 2011, China has played a key role in the rise and fall of Bitcoin. On top of that, China accounted for 95% of Bitcoin worldwide sales and three-quarters of the mines. With regulators beginning to regulate trade and mining, China’s regime has significantly reduced exchange rates.
With countries like Korea and India following this trend, the shadow has now been cast into the future of cryptocurrency. (I repeat here: countries are running crypto currencies, not banning them). Undoubtedly, we will see many countries join forces in the coming months to revitalize the crypto market. In fact, some form of system has long since passed. Last year, cryptocurrencies faced unpredictable price fluctuations and ICOs occur on a daily basis. In 2017, total market capitalization rose from $ 18 billion in January to a further period of $ 828 billion.
Even so, the Chinese people are miraculously good spirits even when they are stolen. Social networking sites and websites are thriving (I personally have been involved in a number of events and visits to other companies) and blockchain initiatives are spreading all over China.
Major blockchain companies such as NEO, QTUM and VeChain are gaining traction in the country. Beginners such as Nebulas, High Performance Blockchain (HPB) and Bibox are also getting plenty of opportunities. Even giants like Alibaba and Tencent are also exploring the potential for blockchain to upgrade their platform. The list goes on and on but finds me; it will be HUGGEE!
The Chinese government has also been using blockchain technology and will in recent years support the establishment of a blockchain environment.
In China’s 13th Five-Year Plan (2016-2020) in China, it called for the development of technology combined with blockchain and creative intelligence. It also aims to promote research using fintech in law, computer cloud and general knowledge. While the People’s Bank of China is also pushing for a blockchain-based digital currency; However, with the medium-sized digital currency hit by some technology, their acceptance of Chinese citizens remains elusive.
The establishment of the Trusted Blockchain Open Lab as well as China Blockchain Technology by Manufacturing Companies and the Ministry of Industry and Technology is one of the factors that the Chinese government has helped to promote blockchain in China.
A recent report entitled “China Blockchain Development Report 2018” by English Blockchain Research Center reported on the development of blockchain companies in China in 2017 as well as a number of measures taken to improve the mainland currency. Elsewhere, the report highlighted the blockchain industry’s optimism and the growing interest it received from VCs and the Chinese government in 2017.
In short, the Chinese government has shown a positive attitude towards blockchain technology despite its insistence on using cryptocurrency and mining funds. China wants to regulate cryptocurrency, and China will gain control. Repeated pressure on regulators should protect its citizens from the financial risk of cryptocurrencies and reduce cash flow. From now on, it is legal for Chinese citizens to have cryptocurrencies but not be allowed to do anything; hence the ban on exchanges. When the market stabilizes in the coming months (or years), we will no doubt see a revival of the Chinese crypto market. Blockchain and cryptocurrency approach (except for special chains where a token is not required). That is why countries cannot block crypto currencies without blocking blockchain technology!
One thing we can all agree on is that blockchain still exists. Lots of exciting events await us and right now is the perfect time to lay the foundation for a blockchain world.