Price drops: China bans cryptocurrencies, Twitter allows Bitcoin

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One day after Twitter introduced Bitcoin donation via the Lightning Network, China is banning all activities related to cryptocurrencies. The latter event has a significantly greater impact on the current exchange rates, which have fallen by 10 percent in the last few hours.

China prohibits trading and Mining

The Chinese central bank has declared all activities related to cryptocurrencies illegal and thus – once again – not only prohibits trading in any digital cryptocurrency, but also mining across the country. Foreign online services that can be used to give Chinese citizens access to trading cryptocurrencies in the country are now also banned. Violations should be strictly sanctioned. Officially, the Chinese central bank wants to protect the citizens and their assets as well as the social and economic order in the country with this approach, but it has always been assumed that the Chinese central bank, like central banks all over the world, protect their own position and the Want to protect the planned introduction of their own, state-run and controlled cryptocurrency. The so-called “digital yuan” is already being tested and is considered to be well advanced. The current measure could be a further indication of the imminent introduction.

Courses drop by 10 percent in some cases

How independent Bitcoin and Co actually are from governments can be proven once again. The crypto market initially reacts to the announcement from China with significant losses. For example, the price of Bitcoin fell from around 38,300 euros to 35,000 euros within 24 hours. Ethereum fell even more sharply with a minus of almost 10 percent and is now below 2,400 euros after almost 2,700 euros were quoted the day before.

The fact that gamers can immediately hope for falling prices for graphics cards and better availability, however, could prove to be a fallacy, since the Chinese efforts against cryptocurrencies and mining are not new. China was the largest location of the mining farms, but numerous provinces had already banned them in the last few months due to the high energy consumption.

Donations on Twitter via Bitcoin

Yesterday, however, Twitter introduced the option to donate on its own network via the Lightning network, where payments are based on Bitcoin.