China Can't Stop Cryptocurrency
When China bans Bitcoin/cryptocurrency, it will simply pop up somewhere else.
We are already seeing this with the Japanese, US, and South Korean Exchanges. All three are exploding in volume in the last week or so.
Check out this chart from CryptoCompare:
Look who is up there at the top.
As you can see Japan now accounts for over half of all Bitcoin trading volume, and guess what, Bitcoin is officially legal tender over there!
China is now muddling around the 6% mark.
Hong Kong is another place that is set to be a major beneficiary of the Chinese cryptocurrency trading ban.
Reports are already coming out of plans to build more exchanges and more crypto-related infrastructure in the region with the anticipation of many new users coming from China.
In regards to Chinese regulation, first it was ICOs, then it was exchanges, now they are saying peer-to-peer exchanges will also be prohibited.
Though I am not sure how they would enforce that one, basically anyone with an internet connection and a messaging or chat account could theoretically send Bitcoin in exchange for some good or service.
That one seems pretty hard to police, though I imagine they will impose strict penalties for violators. After all, we are talking about China, the country with more suspected death penalties carried out in recent years than every other country, combined.
However, taking all this into account one thing keeps popping up in my mind...
China banning cryptocurrencies is akin to what happened with Prohibition in the United States.
What happened with Prohibition, did it make people stop consuming alcohol?
Not really.
Alcohol was officially banned from 1920 to 1933, but it did not go away, it simply moved other places and also underground. Eventually leading way to organized crime.
I look at cryptocurrency the same way.
The genie is already out of the bottle here and it can't be put back in, governments have little choice but to try and work with the technology for everyone's benefit.
Any attempts at eliminating it will likely be ineffective and only further developers and users to constantly find ways around the regulations.
It makes much more sense to embrace it than to try to put your finger in the hole of leaky dam in order to prevent the oncoming flood.
After all, this is: "the people's currency".
The people have spoken!
Image Sources:
https://twitter.com/BKBrianKelly?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
http://www.beerhistory.com/library/holdings/prohibition_1.shtml
http://www.sampsoniaway.org/sw-daily/2014/03/21/heroes/
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Hi ,
Nice work sir
Charlie Lee just said that a trusted source told him the China mining ban is fake.
Source: https://twitter.com/SatoshiLite/status/911067464796053506
Still, the question is: Can you trust his trusted sources ?
FYI, I haven't made any trades on this info.
Disclaimer: I am just a bot trying to be helpful.
It's hard to say. Regardless, there will also be Chinese rebels mining Monero I'm sure haha
Yea I do not think this or anything similar in it's nature will stop btc and the industry. I just did a post on the Biggest Misconception of Bitcoin & Cryptocurrency Bubble.
Great post!
Very right! No one can stop cryptos and popularity will keep on rising...
especially if decentralised exchanges are going to popup. If you looking for a decentralised exchange for ethereum tokens, have a look at oasisdex.com . Feedback is recommended and very welcome.
You are right.
They can block peer-to-peer exchanges like localbitcoins.com. If they do that, arranging a trade becomes so difficult.
Yes, China is a communist dictatorship so they don't believe in free markets. The free countries will take up the slack until political change occurs. Who knows, maybe the banning of crypto will eventually promote a regime change that will benefit Chinese citizens. As you said it's, "the people's currency."
The comparison to prohibition is brilliant, I hadn't thought about it that way before. If people were willing to rebel and turn to organized crime in such an extreme way for BEER, imagine what they'll do for their money!
The counterpoint being, that death penalty is a potentially huge deterrent. But, when people are desperate to earn a living, even that is unlikely to keep them away...
It seems to me that the real question is how long it takes, if ever, before China realizes its mistake - as all the economic activity surrounding cryptocurrency moves to Japan, Hong Kong, and elsewhere. Will they give up on this crackdown in a few years, or stay in the technological past?
I would not be surprised to see them reverse course on this within the next few years, probably after they have figured out how to effectively regulate the markets the way they would like. Either that or it will be when they have their own nationalized blockchain and currency that they can "control".
that Malaysia is number 16.. thanks for info
Yeah who wouldve known that lolz. What a suprise. Malaysian are silently progressing towards crypto thanks to our money laundering prime minister :) Crypto revolution in Malaysia is marching!
Don't worry, I'm sure China is busy cooking up some brilliant new ideas...
LOL! I love it!
Nobody can stop crypto, no bankers, no china, nothing, we getting strong each day, this is just tests. "What doesnt kill you make you stronger"
Thanks for the post