Cryptocurrency can survive (and thrive) without China!
The news out of China over the last week brought quite a shock to cryptocurrency markets.
Bitcoin fell roughly 40% from peak to trough over the last few weeks as the news flow from China seemed to go from bad to worse.
The altcoin market took the news even harder as many altcoins were off 30%+ in a single day.
Just recently, however, we have seen a bit of a recovery in the Bitcoin and cryptocurrency markets as the news flow has changed from "terrible", to "not quite as terrible as we first thought".
Even with the news flow out of China and a couple smaller countries being overwhelmingly negative, Bitcoin/cryptocurrency prices can still go much much higher.
That was the sentiment echoed by Stelian Balta, the Founder and Managing Partner of HyperChain Capital.
Specifically, he had this to say:
"If we look at Bitcoin or Ethereum from a technology perspective, the bad news is not entirely relevant."
Not entirely relevant?
Really?
What does he mean by that?
"If you haven't noticed, miners (including Chinese miners) will continue to mine and developers will continue to create great code and projects."
"Digital assets are a global phenomenon and the ecosystem is in its early days."
That's great but what does this mean that they don't really need China to thrive?
Balta went on to say that they can be just fine strictly from a supply and demand perspective.
"I am very optimistic regarding the global digital assets markets. Digital assets can be considered commodities trading on supply and demand."
"There is a fixed supply of each of one them and demand is only increasing."
Sounds almost like digital gold, perhaps?
"Yes China is an important market and the recent news of exchanges shutting down and ICO funding being banned certainly has a short term negative effect on the prices. However, digital assets are a global phenomenon. Huge Internet businesses like Facebook or Google are banned in China and are doing pretty well."
This last part is especially interesting...
Facebook and Google are 2 of the largest companies on the planet right now and neither is allowed to operate in China.
If they can operate effectively and reach such lofty levels without the Red State, I would agree with Balta that cryptocurrency can as well.
Also...
His "digital asset" reference seems to align pretty well with the United State's definition, as that is the official designation they have given cryptocurrency currently.
Digital gold indeed, the people's currency.
Stay informed my friends.
Sources:
Image Sources:
http://mashable.com/2017/09/12/china-bitcoin-ban-exchanges/#uFvDWMa_caqJ
https://coinjournal.net/down-38-bitcoin-stumbles-amid-regulatory-uncertainties-in-china/
https://futureoflife.org/2016/12/30/2016-actually-year-hope/
Follow me: @jrcornel
Nice post:) I do not think China is relevant for the long term prospect of BTC (or cryptocurrencies in general) at all: China has to adopt to blockchain. I also believe that BTC is antifragile, and that the system gains from disorder. So, all this so called FUD is good for BTC:)
Hey jrcornel,
Thanks for the great content
Interesting FACTS.
Control Control Control.
That is their problem
Exactly crypto is here to stay.
This is the power of decentralization
Keep on steemit.
This will probably be a temporary thing.. China might still come back around. Meanwhile it was a perfect opportunity for investing and getting into the crypto world, or just making some fast profits.
yeah I am totally agree. It was a perfect time for interested people to invest. But like Stelian Balta said, it really does not matter what news are coming. Everyone in the blockchain space (especially on Ethereum/Bitcoin) is working hard and quietly to bring new protocols to work which can really help the society.
Yeah if you aren't already invested in bitcoin, now would be the time to do so. China was just a small setback, but there is still major room for growth as a currency. This type of thing has happened a few times in the past, and it always bounces back and skyrockets. BUY BUY BUY.
Wow thats very optimistic the exchanges are not even closed yet. There could very well be another, bigger setback. Just saying, have some fiat ready
Aaaand we're back up at 5200 ;)
I agree. In my opinion the chinese are just taking a short break to think about the regulations, but will come back with liceced ICOs and exchanges very soon!
I don't think China will ban all cryptocurrency activities. They will make striker regulations so that they have enough controls and give licenses to exchanges and other businesses.
I do not believe China is going against cryptocurrency. It is a country full of very smart individuals, who I believe are trying their best to take advantage of this opportunity. Cryptocurrencies will continue to rise in the future. If the members of Steemit are anything like myself, you should now have friends and family members approaching you about how to get into cryptocurrencies.
Crazy times, trade it X100
https://www.bitmex.com/register/HJfZyC
Good riddance, they will just be left behind or the black market will take care of the volume
Bitcoin will sustain with out Chinas in put! If China let they can no longer play the market as seen in the past years. Look at this as a huge stepping stone where individuals like me and you can by cheap Bitcoin unlike in the past few months! I think by the end of September, October Bitcoin could fall to as low as 1500! What you think?
Very unlikely!
Hope so, then we can all get moar!!
I don't see a reason why it should fall this deep? Everything the chinese government has to say, has been said. Any upcoming news from china can just be good news.
it was a good opportunity to invest