Hello my Friends,
It has been a crazy week for Bitcoin, and all crypto's alike, and the situations seems to only be getting more and more strange as the days progress
The People's Bank of China (PBoC) banned all Initial Coin Offerings (ICO) until further notice, with the news slowly dripping out, that China wasn't planning on banning Bitcoin, but wanted to have some oversight on the ICO-process, as this obviously is needed to protect their own people against fraudulent ICO's. That I personally can understand.
As Bitcoin grows ever bigger, and as we are reaching more and more people and therefor more and more financial power as a whole, it was only a matter of time until governments start to get involved.
But now, I am once more reading about China, at first I thought ; " Damm, mainstream media is even slower then I remembered, lol" But it is once again serious, as several official news outlets are covering this new piece of information.
Some of them talk about the previous ban being a temporary restriction, and that licensing is on the way. Although I strongly believe that anyone should be able to create his or her own coin, I do see that when you ask for millions in investments, some regulation would be of grate benefit to the overall stability of the crypto-verse.
While others even report on a total ban of the local exchanges, and even Bitcoin itself. I highly doubt that this is the case.
When looking at the news, you really need to remember the stakes that Beijing has. They were the first to officially recognize Bitcoin as money, and many stores and online vendors actively use and accept Bitcoin as payment. They took a risk on this, as they also have their national currency to take care of, and Bitcoin could likely be a competitor on a state-run market.
When taking into account these things, I cannot see China Banning Bitcoin, but I do see them trying to regulate it, and just as in other countries, sometimes the process of trying to regulate new things can get messy. Even in China.
What comes next is to be seen, but if China would ever put restrictions on Bitcoin, the effects would be gigantic. Most of the trade-volume for Bitcoin comes from China, and such a step would greatly undermine the faith people have in digital money, causing the price to drop to unknown, but deep depths.
But this scenario remains unlikely in my opinion, considering the steps China made in the past.
So, what are your interpretations of all this news ? Please let me know in the comments below.
Happy trading my friends :D
