China is proving that government actions anywhere have the power to destroy cryptocurrencies. It adds to a series of black eyes for Bitcoin and other cryptocurrencies.
They do not. Crashing the price doesn't affect the network.
A few people losing money because price dropped means nothing to Bitcoin, specially in the long term.
China may ban bitcoin. So what? People will keep making p2p transactions if they want. No government can shut down bitcoin network, neither stop people from using bitcoin.