What does China’s Digital Yuan Mean for Bitcoin?
Like the most ever powerful US dollar, cryptocurrency is used as a medium of exchange. The main difference is that it is digital in nature and is securely encrypted to control the creation of coins/tokens. Bitcoin, decentralized crypto, is the father of all cryptos out there. It has already experienced a lot of milestones and downfalls. It was founded in 2009 but gained utmost prominence and major growth in 2017. From 2018 to 2021 it experienced consistent market fluctuation. Is it capable of staying on top? What does China’s Digital Yuan mean for Bitcoin?
What is Bitcoin?
Bitcoin has always hit the headlines these past few months. But what’s with this “creation” that the world is going crazy about? Is this some sort of scam or is it really a legit stream of income? Bitcoin was founded in 2009. The technology behind it is created to go further. So imagine yourself investing just $1000 in Bitcoin at that time when it’s publicly distributed for people. You are now richer than you can think.
Bitcoin in 2008 – The Mysterious Founder
A Bitcoin project was posted by someone called Satoshi Nakamoto. It is sent to a mailing list to initiate a discussion on this innovation better known as “cryptography”. The real identity of Satoshi Nakamoto remains a secret up to this day.
Bitcoin in 2009 – Earlier Years
Bitcoin software is designed for the public. It was made available for the first time in 2009. Mining was also introduced in the same year. It is the process where new Bitcoins are born. All transactions are stored and kept inside the blockchain technology.
Bitcoin in 2010 – Value Increases
At first, Bitcoin only offered mining. Trading was not yet a thing until 2010. Everything was in blur even assigning a monetary value to each unit. One miner traded his 10,000 units for two pizzas. That story is true. If that man chose to hold those coins, today he would have an estimate of more than $100 million. See? Growth requires time in any sense and in any industry.
Bitcoin in 2011 – Competitors Enter the Market
Like any other business, Bitcoin witnessed the unending emergence of rival cryptocurrencies. It happened when Bitcoin rose to fame. Its idea of a decentralized system and currency encryption became a super trend. Therefore, other alternative coins do their best to improve every downside of Bitcoin. They aim to offer greater speed, anonymity, and many more advantages. The most popular ones were Namecoin and Litecoin. Today, up to 1000 types of cryptocurrencies are in circulation around the globe. New creations are still on the way.
Bitcoin in 2012 – 2013 – First Downfall
Not long after the value of one Bitcoin became $1000 for the very first time, the price instantly dropped. Many investors who invested their money at this point have suffered losses as the value suddenly becomes $300. In that case, two years is the minimum required time to make it reach $1000 again.
Bitcoin in 2014 – 2015
It is not a surprise for Bitcoin to be used by criminals. The company itself is in “good faith” but due to the attractive and lucrative system of cryptocurrency, criminals use this chance to earn money. The world’s largest issue is when the Mt.Gox Bitcoin exchange went offline. Guess what? The freaking 850,000 Bitcoins of different owners disappeared just like that. There are many investigations still going on. All of them try to get to the roots of what happened. Whatever the version they come up with, there’s still truth in that event. Someone illegally holds control of Bitcoins valued at almost $450 million USD. At present, it’s almost 5 billion dollars.
Bitcoin in 2016 – New Potent Coins
Are you familiar with Ethereum and ICO’s? There is one consistent cryptocurrency coin that almost always keeps it close to stealing the spot of Bitcoin. As the Ethereum platform entered the game, the tough market tournament officially started. Ethereum uses Ether cryptocurrency to represent itself in the blockchain apps and smart contracts. By then, another newbie entered the market. Initial Coin Offering or ICOs is a fundraising platform. It gives the investors the choice to trade cryptocurrency the same way stocks or shares are traded in startup ventures. In the United States of America, the SEC warned the public that they lack oversight in ICOs so they need to be vigilant as this could be used as a disguise to look like a legit investment scheme. Also, the Chinese government’s bitcoin argument is true. The nation went further and banned the right away. This could also happen to other cryptocurrencies without enough security.
Bitcoin in 2017 – Prominent Milestone
This is the moment of truth. Bitcoin officially reached $10,000 in 2017. IThe coin continues to increase up to this day but sudden fluctuations still happen. That’s the consequence of entering this volatile market. The consistent increase of places and uses of Bitcoin contributes a lot to its growing popularity. As more and more uses of Bitcoin emerge, it is gaining the trust of people who eventually become investors.
The China ban on cryptocurrency does not solely rely on the history of Bitcoin itself. Whatever you choose to believe in with regards to Bitcoin and other coins out there, it’s your choice. You could see it as the future of money or a new scheme of scams.
How Does the Digital Yuan Affect Bitcoin?
What does it offer?
First, what is Digital Yuan? Yuan Pay Group company launched not only a coin. It also introduces its very own crypto trading platform for the Digital Yuan. Our coin and platform are anticipated to be taken by millions of people in no time. It has the capability to surpass Bitcoin and crash other cryptocurrencies in the market. We are not here for old tales. Any company, new or old, aims for wealth. We are here for a change. YuanPay Group’s goal is to be part of a big project. As the Chinese government and the People’s Bank of China support us, we are aiming for safe crypto trading. And China to be the first cashless nation in the world!
Why Does China Want to Ban Bitcoin?
Why did China ban Bitcoin? As per the Chinese government, there is no time to waste. The authorities are acting as early as they can because there is a lot to be concerned about the crypto’s extremely volatile price. It can be easily used as a medium to launder money through illegal dealing and other cover-up transactions. There is also another good speculation that the Chinese government’s objective to be always seen as a leader in green energy is affected by crypto’s mining reputation. The country’s leader swore to his people that the country will be safe from carbon pollution in the year 2060. It is also a piece of overwhelming news for investors that China is now offering its first-ever centralized Digital Yuan.
The Chinese government has been burning bridges between Bitcoin Yuan relationships. It is time for utmost security. Even banks have been banned from handling Bitcoin since 2013. In fact, many other countries concerned with their economy started banning these kinds of cryptocurrencies. Now it’s your choice. Choose between a centralized and decentralized crypto platform.
Bitcoin Future Predictions
The Bitcoin China ban has played a great purpose for the Chinese people. The leaders are protecting the interest of the whole nation. As they say, a king’s reign always has an end. Bitcoin’s popularity will most likely disappear in the year 2060. It will slowly decrease until it reaches the bottom. When the time that all bitcoins are mined, you know what will happen. No more Bitcoins will be created and released into the platform. Don’t worry, it won’t just disappear like a bubble. It is a process but it’ll surely happen. Before this period, it might still reach its highest value. Although, the rise and fall might be subject to radical changes. You should be wary of the consequences.
If you are torn between trying Bitcoin or Digital Yuan, we suggest that you try both. Bitcoin is all over the news nowadays because it’s already popular. It is breaking news on every social platform. On the other hand, Digital Yuan is aiming for global impact, improved security, and heightened stability. Through the creative minds of people behind YuanPay Group, the e-Yuan is one step ahead of crashing Bitcoin and even the US dollar.
For the past year, China has stepped up goals to build the country’s centralized cryptocurrency. It banned crypto mining operations and other major banks from doing business with any crypto companies. It’s also true that Bitcoin is the most popular of them all, the fairest of them all, the most of them all. But it is not backed by gold bars or government credit. The price solely reflects intuitively based on its future value.
Learn from history. There could be a mistake that could repeat the doom. Here is what Bitcoin is, here is what China’s Digital Yuan means for Bitcoin.