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China the largest miner of bitcoin banned the cryptocurrency trading a couple of days ago , putting bitcoin price on a nosedive . China's ban might be to appease international agencies and also most probably to boost the upcoming communist party elections .
Chinas big government and banks cannot TOLERATE bitcoin . The very threat that the yuan might be replaced with bitcoin transactions in the long run is probably one of the major reasons for the huge unrest against bitcoin . But this is not possible as the recent news is that these bitcoin miners are all moving to a well accepted JAPAN . So keeping the ban for long will only hurt the economy .
THE SECOND REASON might be the upcoming party elections . The members might certainly go against the government if their power reduced in the economy. The new innovation or tech bitcoin has the power to overrun the economy .
This has happened way back in 2011 , when the chinese banned VIE . Although this got the growth and economy down and also its stocks to a new low , the chinese soon liberalised the rules and the stringency came down . And the same thing can be expected in the recent ban. People will simply adapt and bitcoin will simply grow
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