Bitcoin Ban in China fails as Twitter adds Crypto Payments

Bitcoin Ban in China fails as Twitter adds Crypto Payments. The Chinese central bank’s decision to outlaw all types of cryptocurrency trading. Thus making bitcoin illegal in the country. Has had little impact on the price of the world’s most valuable digital asset.

Bitcoin’s secondary layer has been constructed on top of the first layer. And many feel that this will drive the cryptocurrency into the mainstream.

Bitcoin was worth $42,666 at 16:00 EST on the Bitstamp platform on Saturday. Maintaining its position above long-term moving averages. And exceeding its value at the start of August, according to data from CoinMarketCap.

Announcing that all cryptocurrency-related operations. In the country were “strictly prohibited,” the so-called People’s Bank of China. A central bank controlled by the Communist government. The digital currency momentarily fell below $40,700 on Friday. Beijing has accused the cryptocurrency business of “disrupting economic and financial order”. And “endangering the protection of people’s property,” according to the official press.

Bitcoin’s Launching

Bitcoin, an open-source monetary network that employs blockchain technology to produce a safe form of digital cash. That is completely independent of central banks, was founded in 2009. As a free and open-source project to bitcoin ban.

China was initially receptive of the technology. But in recent months, the country’s opposition to it has intensified.

A ban on cryptocurrency transactions was imposed by the totalitarian government in June. As was the outlawing of the energy-intensive process of bitcoin mining. Which involves putting specialized computers to work solving complicated puzzles in a race to earn newly minted bitcoins.

Although the first crackdown resulted in a 20 percent drop in the price of bitcoin, the latest. Much more harsh step has only caused the price of bitcoin to drop by less than 5 percent.

After finding firm support at its 200-day exponential moving average on Friday. Bitcoin was virtually completely unchange on Saturday as well.

And, while mainstream media outlets such as the BBC, Sky News and The Times. The Guardian is also quick to report on the negative developments in China. News coverage of Twitter’s positive adoption TWTR -0.9 percent was almost entirely confined to financial outlets. Such as Bloomberg and CNBC, among others.

Twitter began integrating

Twitter began integrating the Strike bitcoin Lightning wallet with its platform last week. Making it possible for users to send and receive bitcoin. As easily as they would send a tweet outlining a concept.

Despite the fact that the launch of bitcoin ban was mostly disregarded by the media. Its significance cannot be overstate. Because of bitcoin’s high transaction prices and lengthy processing times. Its detractors have long contended that the cryptocurrency cannot be scale for widespread adoption. Although fees and validation times fluctuate according to network demand. The average transaction on bitcoin’s core layer costs roughly $8 and takes about 20 minutes to validate.

Lightning tackles this problem by processing transactions off-chain through a secondary layer. That, in principle, can handle millions of payments per second. Lightning is now under beta testing (Visa, by comparison, processes about 1,700 payments a second).

Users interact with the Lightning network through mobile wallets that specifically designed. For this purpose, such as Strike and Muun. The inhabitants of El Salvador, who only last month recognized bitcoin as legal cash. Are already using their national Lightning wallet, Chivo. To make micro-payments for items such as coffee and newspaper subscriptions.

Media Attention

“We just made a quick, free remittance transfer, from Chicago, Illinois, USA to San Salvador. El Salvador using Twitter,” Strike founder and CEO Jack Mallers said in a video announcing the Twitter launch. Why would anyone want to use Western Union WU -0.3% again? When you mix one of the world’s largest social internet networks with the world’s greatest open monetary network. Twitter inadvertently becomes one of the world’s best remitting experiences.”

Given the dearth of media attention. It’s no wonder that Lightning only accounts for a small portion of the bitcoin network today. The protocol now has fewer than 3,000BTC locked in it. However, its capacity has progressively increased this year, and it expected to continue to expand. As Twitter completes the integration for all users in the coming weeks.

China is clearly concerned about bitcoin, but not for the reasons you might think. Money laundering, phishing schemes, or economic instability.

China is concerned because bitcoin allows its inhabitants to immediately teleport their riches around the world. At the touch of a button, avoiding the short-sighted, arbitrary capital controls. That Beijing is no doubt considering in the wake of the Evergrande fiasco.

Their fears well-founded, if recent price movement is any indication. The market scarcely noticed when a global superpower declared war on bitcoin.

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