Blockstream CEO Adam Back seems to be unfazed by China doubling down its crackdown on Bitcoin. The veteran cypherpunk states Facebook, Telegram, Twitter, Google and other major internet companies are banned in the communist state.
Hence, the ban issued in September 2016 could serve as a success metric for the top cryptocurrency since China recognized its disruptive potential.
On Oct. 23, Chinese President Xi Jinping personally endorsed blockchain, the technology used for verifying cryptocurrency transactions. This provoked a massive cryptocurrency price rally that briefly pushed Bitcoin back in the five-digit territory.
However, the euphoria quickly dissipated after China made it clear that it never warmed up to crypto. Its nod towards blockchain means that the technology could be potentially used for Orwellian-like purposes (for instance, improving the performance of soldiers).
The People's Bank of China's (PBOC), despite working on its own cryptocurrency, cautioned investors not to get involved in cryptocurrency trading.
“The issuance, financing and trading of virtual currencies involve multiple risks,” PBOC said.
Pulling the strings
While the ban might be a good thing for Bitcoin, many believe that China wields an immense power over Bitcoin. Bitspark co-founder Maxine Ryan told WSJ that it was the dominant force behind BTC's price moves.
“China really is what the market sees now as the main indicator moving crypto prices,” she said.
The top cryptocurrency has recently erased the China pump and experienced an even deeper correction, plunging below the $7,000 level.
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