Rumors are flying that China will ban Bitcoin, and the whole crypto market is in correction mode with prices down.
So, IS China doing this?
It’s been known that they want to reign in ICO’s (initial coin offerings) until they can have their regulator author some regulations around that process, but news outlets are citing “anonymous sources” that the Chinese government is moving to ban cryptocurrency exchanges in their country since they fear monetary system (Chinese Yuan) instability.
Of course the crypto media is skeptical about an outright ban of ICO’s or exchanges.
It’s natural to believe that China loathes anything that looks or smells like instability, and if they think that this rampant cryptocurrency “casino” is out of control that they would make moves to stuff the genie back into the bottle… but they can’t do that and cooler heads are saying that this is not what is happening.
Now I have zero sources other than logic, history, and what I see, as well as knowing that once a disruptive technology has been released that there really is no way to undo it.
The Chinese are NOT stupid and surely they must realize this basic principle.
As I see it, there are two logical scenarios here.
The most plausible is that they truly are spooked by the casino like mentality and “irrational exuberance” in the cryptocurrency markets and want to slow things down a bit to make sure that not too many Chinese are fleeing from Yuan to Bitcoin and altcoins with their assets, which are harder for the government to regulate and keep track of, and tax.
It just makes sense that the Chinese feel that they are losing control and this is a way to bring some more control back into the situation, by slowing things down and shifting the spook factor towards the crypto exchanges and their customers.
It’s a complicated game, though, since there are all of these agreements out there, like pending cryptocurrency alliances between China and Crypto currency Bulls like Russia, not wanting to put their head in the sand and have new technologies pass them by in favor of world competitors like America and Russia, and who knows, probably an endless host of other related scenarios.
The Bitcoin Chinese Cryptocurrency Conspiracy Angle
Of course there is this other idea I came across, and while it’s not something I totally believe, I do believe that the Chinese might actually be able to take advantage of it to their benefit while they are busy accomplishing their objective of slowing the Bitcoin and cryptocurrency markets unhinged rise.
It says that the Chinese are actually doing this to purposefully tank the Bitcoin price temporarily to cause panic selling and then they can buy up a lot of Bitcoin at sale prices. After all, if Bitcoin really is set to be the new gold, and we all know that China loves buying commodities like gold, why not buy up all the Bitcoin they can while they cause the prices to tank?
It makes a great conspiracy, but of course I have no idea if there is any evidence of this being the case. Wouldn’t the blockchain betray this information?
Panic Sellers Lose
I can say this for sure, when these things happen, those who sell at a loss are the sure losers. This market will go up again since Bitcoin and cryptocurrency is a disruptive technology this is going nowhere. Not even the likes of the Chinese or the US government can push this genie back into the bottle, any more than they can shut off the Internet from whence it sprang forth.
This is a speed bump in the road towards a new currency paradigm, and those who are only holding worthless fiat paper currencies will be the ultimate losers in the end.
Make sure that you have cryptocurrencies as well as hard currencies like silver and gold.
Of course most working stiffs can’t afford to just go and buy lots of this stuff when their money is usually paycheck to paycheck just to pay the monthly bills.
More income and cash flow must be generated and then funneled into cryptocurrencies like Bitcoin and altcoins, and commodity precious metals like silver and gold.
Now there are many proposed ways to make this money available, from instituting a tiny strict budget so as to free up money for this asset buying, which we all know is very limited in its effectiveness, or you can find ways to produce more.
There is a lot to be made with affiliate marketing, as the Penny Hoarder proves, so even small time internet affiliates have a pretty big pie to take bites from.
Once you read these articles and understand that when you pair a product with a marketing system (which is also a product) and internet traffic (people looking at the business model), then that is a money generating activity which can provide all of the cryptocurrency and Bitcoin asset buying, or gold and silver purchases that anyone would need to hedge against what many are saying is the coming fiat meltdown.
Don’t get caught out in the storm and whatever you do stop relying on just your job as your only source of income and security. Don’t rely on the government either.