So it has finally happened, China has banned Bitcoin, or maybe they have temporarily banned it, or maybe they have brought in new rules to make it difficult for the exchanges. Whatever, BTCC has announced it is closing operations, as has ViaBTC and every other exchange is expected to close by the end of the month.
Good. Fuck off!
China banning Bitcoin is a beautiful thing. Firstly it validates what Bitcoin stands for, financial freedom from crooked governments and banks. Let us just remember the financial crisis where the government’s of the world relaxed fiscal rules to help the rich get richer, and when it all came tumbling down, what happened? How many bankers went to prison? How many bankers had their bonus taken back? Exactly, but the governments of the world bailed out their friends in the city, allowing them to continue their champagne lifestyle built on the misery of working families.
Look at Venezuela, hyperinflation, mass hunger, and a war on the streets. What about when Crypus received a bailout from the IMF and forced a 60% raid on the savings of those with more than €100,000 in the bank, why? Because of financial mismanagement by the government and the EU. Oh, but they can afford it right? They have over €100,000 in savings, no, they earned it and they deserve to keep it.
The history of the world is littered with examples of governments stealing from its people.
If Satoshi is still alive, I bet he/she/they are having a party right now as this is exactly why they designed Bitcoin. And China can’t actually ban Bitcoin, nobody can, all they can ban is the exchange of fiat via exchanges. You will still be able to buy Bitcoin on the streets for cash, it will go underground like any other prohibition.
You can’t ban Bitcoin but if you try you will only make it stronger.
While the price of Bitcoin is still unstable it is actually the most stable of all Crypto. As it continues to grow and more governments legitimise it, it will become even more stable. It will just be a rocky road to get there.
China banning Bitcoin is a beautiful thing. They tried to control it and failed, all they had left was to ban it. They have proved everything we hoped; it is working, it is growing, it has value and the people want it. It is money we own which the government can’t trace, steal or control.
I’ve never liked the way communist in capitalist clothing government has such influence over the price and stability of Bitcoin. A government which enslaves its population and whitewashes its own history.
Sure, Pete, these philosophical arguments are great but I’m losing money here.
Back to the reality of being a trader, the markets have crashed. As expected. We are traders, and we are here to make money. So what now? Bitcoin currently sits at $3,496.40, bouncing back after defending the $3k marker, perhaps a solid defence or perhaps driven by buy orders activating. Who knows?
Personally, I am expecting a choppy market through to the end of September as Chinese exchanges go through their wind up procedures and we see how the market reacts with less demand. I am not buying now for a couple of reasons:
- I have no idea what will happen to the price, buying now is guesswork, nobody knows what will happen, and I don’t like to guess
- I still own 60% of my Crypto holdings after selling off most on Monday
It will be clear when the market has stabilised, and I expect we will enter a period of sideways pricing or steady growth, and this will be the time for me to invest as growth is more secure. I don’t care for finding tops and bottoms; I care for finding an upward trajectory. When the market stabilises this will be a great opportunity to invest, especially in high-growth altcoins.
We are though at risk of a bear market, similar to 2013, this we must be aware of.
There are rumours that China will bring in a government-run exchange or possibly new exchanges which have restrictions on withdrawals and this has the potential to be a good thing for the price of Bitcoin, even if it is against the fundamental nature of it. A government-run exchange would legitimise Bitcoin as a method of payment, and I would expect the rest of the world to follow.
So what now? Personally, I am going to sit back and let the drama unfold without trading. We are in unchartered territory, and even the best trader will be trading without really knowing what is going to happen. I have locked in profits for the year and a significant play in the market. When the market stablises I will be back investing.
Any questions then give me a shout.