Bitcoin price is heading upwards steadily, even with its daily fluctuations. Today we will explore the three main countries that have the most influence on bitcoin price. Since development stage and until now, the trading volume in China, Japan, and Russia has directly influenced bitcoin price.
China is the place where you can find the most powerful miners who are responsible for bitcoin transactions processing. Most of the newly bitcoin supply mainly are released from from the different mining pools located in China.
According to Cointelegraph, Bitcoin price plunged down or raised up several times because of China. Recent growth, as well as drop were because of market sentiment from China news. When the two largest cryptocurrency exchanges in China, Huobi and OKcoin, announced that they required pausing withdrawals for a month in order to update the software, the price of bitcoin dropped.
The government’s involvement in bitcoin has also shaded the price. In particular, the People’s Bank of China (PBoC). The price was affected badly when PBoC announced bitcoin as “not legally protected” and has “no real meaning”. Since Bitcoin is not getting support from the government, the largest exchanges in China suffered. PBoC’s actions had cause a ripple effect across the world. As a result, bitcoin price dropped down by half over the next two weeks.
Not only that, the price of bitcoin fell again in early 2017. It was because the PBoC carried out on-site inspections on OKCoin, Huobi and BTCC. Consequently, the bitcoin price was down again because of the action of the government-controlled bank.
Since Japanese government officially recognized bitcoin as one of the legal payments options in April this year, the CNBC News stated that bitcoin market value rose up to $ 1 billion. In Japan, bitcoin trading became the second most liquid market according to Gatecoin, a cryptocurrency trading platform in Japan.
The recognition of Bitcoin, of course, comes with other requirements which bitcoin exchanges needed to follow. It’s actually good news for the cryptocurrency communities. However, it’s not an easy task. The Accounting Standards Board of Japan has announced that they have started working on creating an accounting framework for both users and businesses dealing with cryptocurrencies. According to the Time and NewsBtc, Japan is expected to drive the usage of cryptocurrencies into over $9 billion in next three years.
Russia is another country that just recently recognizes bitcoin. It’s a green light for the bitcoin communities in Russia. The Deputy Finance Minister of Russia stated: “The state needs to know who at every moment of time stands on both sides of the financial chain. If there’s a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations.”
So, from this post, we have learned how these three countries’ influences has affected the bitcoin price.