Concise analysis; is China going to ban Bitcoin and cryptocurrencies?
There are rumors about the fact that the Chinese government may be planning to ban crypto-currency exchanges from trading.
Yes, despite the ban on ICO, the Chinese government is suspected to want to ban all crypto-currencies including Bitcoin, Etherem and Steem!
While we do not believe that will happen as we explained in a former post, it is worth discussing to detail the consequences of such an action - should it happen.
Can crypto-currencies be banned?
NO. Why?
- Crypto-currencies are voluntary currencies and as along as there is someone willing to use them, they will continue to exist
- China does not "own" or "rule" over the crypto-currency industry. China could only make crypto-currencies illegal within its borders
- Legal or not, Chinese people will still use crypto-currencies
Why do governments want to ban crypto-currencies?
Governments give several reasons including;
- they threaten the monetary monopoly of central banks
- they serve as channels for criminals to launder money
- they are filled with scams since the industry is not regulated
- they facilitate financial transfers for terrorists
- blah, blah, blah...
What happens when anyone tries to ban cryptocurrencies?
Mostly, it is governments who will try to ban cryptocurrency, however these are the consequences;
- the movement moves underground and become even more entreanched
- it becomes more valuable due to the high demand but limited availability - just like drugs
- the economy looses billions and trillions of dollars which could have come in from ICOs
- after years of failing to suppress it, the administration which suppress it is overthrown by political rivals
What could China/governments do?
Instead of fighting the Blockchain or cryptocurrency market, @BlockRush believes that governments should rather befriend them.
Blockchain technology was built for anarchism so attempting to fight it will only be like putting it to use. There is a saying:
if you can't beat them, join them
Over 100 of the world's top banks including;
- the World's Bank,
- the formidable Bank of England,
- People's Central Bank of China,
- Bank of Canada,
- Goldman Sachs, Santander,
- Morgan Stanley,
- the mighty Barclays,
- BBVA,
- Commonwealth Bank of Australia,
- Credit Suisse,
- Goldman Sachs,
- J.P. Morgan,
- Royal Bank of Scotland,
- State Street,
- UBS,
- Bank of America,
- BNY Mellon,
- Citi,
- Commerzbank,
- Deutsche Bank,
- HSBC,
- Mitsubishi UFJ Financial Group,
- Morgan Stanley,
- National Australia Bank,
- Royal Bank of Canada,
- Société Générale,
- Wells Fargo
are using or developing Blockchain/cryptocurrency technologies, so why won't governments jump onboard?
Back to the question, Will China suppress crypto-currencies?
Well, only time will tell. However if they do, then we already know of the potential consequences;
- loss of economic wealth
- political instability
- more entrenched underground activities
Banks and goverments like blockchain technology but not crypto.
As you wrote: threat to inflationary national valuta. Crypto cannot be controlled by governments.
the language in the information I came across was more about the behaviour on specific exchanges, but neat stuff happening.
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I think it's just there way of regualating it. Get people to fear losing it, allowing the govenment to then control. Time will tell @blockrush
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This is a product of the control anxieties of the World Governments
It is just a way to stop it from going even higher. Since the China rumors appeared bch settled 4200-4350. This temporary measure only aims to stabilize the market by cutting the public trust on crypto.
nice post
Guys I'm just trying to be realistic here.If the financial system was threatened they could easily buy up all the current crypto currencies in the world and hold it. Or even worse, with the amount of money central banks possess they could play Pump and dump game all the time up to the point where cryptocurrencies will not be attractive to Ordinary People anymore. The whole market cap of 160 billion or something is nothing when compared to 750 trillion global economy. I am sure that the whole blockchain technology is build not to disrupt the financial system but to make it transitional step from the current debt economy by some government. Anybody who has some brains knows that current economy model is doomed to a default, and let's only hope that the transition will happen smoothly.
i agree