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Bitcoin [BTC] is used by a lot of people to conduct anonymous transactions, says former Chinese banking bigwig

Akash Anand

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'Bitcoin [BTC] is used by a lot of people to conduct anonymous transactions', says former Chinese banking bigwig
Source: Unsplash

China’s involvement in the cryptocurrency space has created a lot of furor with the country taking a lot of steps to reign in the digital currency phenomenon. In a recent interview, Zhou Xiaochuan, the former governor of China’s central bank, spoke about the similarities between China and USA and how Bitcoin [BTC] plays a part in the bilateral dynamic.

Speaking to CNBC, Xiaochuan stated that cryptocurrencies have been used a lot in today’s scenario with Bitcoin acting as a huge propagator of the cryptoverse. He also added:

“A lot of people will use the network to have anonymous transactions. These anonymous transactions are mainly done through cryptocurrencies such as Bitcoin.”

China has always been an area of interest for cryptocurrency officials as evidenced by comments made by Ripple’s Chief Marketing Strategist Cory Johnson. He had said:

“Cryptocurrencies are different. That’s good, I think cryptocurrency is too limiting in the notion of what these things are but I think that things like Bitcoin have some real technological limitations. I think the limitations around how many transactions they can do per hour.”

Johnson also touched upon how 80% of all Bitcoin mining is done in China, therefore, concentrating the power with the Chinese miners. Xiaochuan went on to elucidate upon the similarities between the United States and China and how both the governments are trying their hardest to control anonymous commodities.

The former Central Bank employee also spoke about how cyber intrusion and other crimes are some of the major cases that the governments of both countries were invested to curb. China’s stance on digital assets has always been on the rocks, with the country deciding to ban cryptocurrencies in the subcontinent.



China’s intentions in the cryptocurrency space have also been considered shady by a lot of experts, a point stressed upon in a paper titled ‘The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin’.

The first of the list is the ideological difference China shares with a decentralized currency. The report stated:

“Bitcoin stands in ideological opposition to China’s centralized governing philosophy, so they may be motivated to weaken or destroy it to make an ideological statement.”





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1 Comment

1 Comment

  1. Avatar

    John Hellenes

    December 11, 2018 at 10:14 PM

    Bitcoin is not anonymous. Blockchain (Cryptocurrency) blocks are public knowledge (available to everybody), once you acquire the address of bitcoin wallet, you see their balance, transactions and everything in between. In contrast to regular banking SWIFT payments and other bank to bank, there is even a database to visually see payments, banking payments are totally private , however take a long time, have a more than 1% error rate of lost funds and very limited.

    There is obviously a lot of confusion between (public and regulators) and (the blockchain community and government organizations supporting blockchain tec) .

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Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
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Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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