March 2, 2021

WELTRADE Blog | Why did China change its mind about restricting bitcoin mining? Again buy video cards for mining?

The official official revolution in official China regarding blockchain technology, mining and cryptocurrencies, such as it has already managed to call many informationresources, in fact, is simply a statement of the very well-known thesis "if a phenomenon cannot be prohibited, then it should be organized and headed." China is trying to bring the sphere of blockchain and cryptocurrencies out of the shadows, as it is convinced that this can be very beneficial for the economy and the country as a whole. It's no secret that it was in China that mining reached its peak for a long time, and the largest trading volumes on cryptocurrency exchanges are made precisely by traders in the Middle Kingdom. The potential of this industry is huge now, and China is not a country that will miss the opportunity to become a leader in anything.

WELTRADE Blog | Why did China change its mind about restricting bitcoin mining? Again buy video cards for mining?

With the advent of bitcoin futures, it appeared andthe possibility of short sales of the first cryptocurrency. Since that moment, Bitcoin has become a full-fledged trading financial instrument and now it has all the same characteristic features as traditional financial assets traded both on exchanges and on the OTC market. More and more institutional investor structures are turning their attention to the cryptocurrency market. These structures require an effective and, most importantly, legal instrument for hedging their risks. For such investors, futures traded on the exchange is the ideal such tool. The growth in turnover of futures on exchanges, including the Bakkt exchange, indicates a commensurate increase in trading volumes on crypto exchanges, where physical bitcoins are traded. In addition, the mere presence of the possibility of short sales helps to improve trading liquidity and, thus, reduce excessive volatility in the price of bitcoin.

What do you think? Are you planning a new “HYIP” cryptocurrency?

Vasily Barsukov (Chief Dealer WELTRADE)