The price of the digital currency known as the “Bitcoin” has held steady in recent weeks despite a negative press blitz from the Chinese government. It remains to be seen if this trend will continue or is it a one-off blip, but the momentum continues to remain strong with investors betting that a stronger economy in China will help to increase demand for this digital currency.
This media campaign, which includes an article written by a Chinese newspaper and an online magazine also published by the government, is a direct reaction to the economic slowdown which is currently hitting the country like a ton of bricks. A large number of people are losing their jobs in the country, with many others moving abroad due to the increased competition on the job market. All this has been going on for some time, and with the Chinese government coming in to the picture, it is likely that they are attempting to prevent the same thing happening to them.
With many people are losing confidence in the digital currency and having started to hoard it, the Chinese government is now taking action to protect its citizens and prevent the collapse of the market. It is likely that the more money that people invest in this currency, the more confidence that it will regain, which will have a positive effect on the value of the currency and help to keep its value in high growth territory over the longer term.
If you are still unsure about what this means for the future of this currency, there is no need to worry, because it has been forecasted by most major banks in the country that the value of this digital currency will rise over the next five years to reach as much as US $1500 per coin. This is a relatively low value for a currency, but one that should be seen in the context of the current economic climate where the value of almost every other commodity is falling.
The negative news blitz from the Chinese government may just be a temporary setback for this currency, but it can only serve to strengthen its position in the future. This is because as the economy starts to pick up, more people are planning to hold onto this digital currency rather than switch to another one.
The continued strength of this market, combined with the continued high growth of other digital currencies, is a strong investment opportunity for anyone who wants to invest in this exciting new industry. It is important to remember, however, that it will be some time before this asset class gains enough strength to start to influence other markets around the world, so if you are looking to make big money from buying and selling of this precious asset class, you will need to stay on top of events in the world of foreign exchange markets in order to make sure you don’t miss out on the best opportunities.