Bitcoin is beyond government control

Bitcoin has surged more than 33 per cent from Friday’s wave of panic selling, suggesting the cryptocurrency is becoming more and more immune to government intervention.

After news broke that Chinese regulators were shutting down all exchanges on the mainland, the price of the world’s most valuable cryptocurrency plummeted over 40 per cent and dragged the price to a low of $US2,981 ($3741).

Citing the lack of licensing and regulation, authorities gave the major exchanges operating in China 10 days to close their doors.

As of Friday, the last exchange ceased trading and Bitcoin sustained heavy selling.

However, over the weekend, exchanges throughout the rest of the world picked up the slack and voracious demand returned, sending the price back above $US4,000 a coin, before slipping slightly on Tuesday morning.

“There are always those waiting in the wings to buy Bitcoin, whenever there is a price dip,” says Duncan Campbell, director of Digital Currency Experts, an education consultancy.

Not because they’re interested in trading it but because they feel it is seriously undervalued in the long term.”

The long-term believers in Bitcoin see the decentralised network as a potential solution to the inefficiencies purported by global central banks, which can print as much currency as they like, whereas Bitcoin is restrained by a 21 million cap.

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Source: Bitcoin is beyond government control – The Sydney Morning Herald