11/10 ANDY HOFFMAN (CryptoGoldCentral.com): Bitcoin Versus The Chinese Government – No Contest!
As I wrote last week, Bitcoin’s most powerfully bullish trait is its unconfiscatibility; that in turn, causes government to fear it – even the world’s most powerful, who as a matter of national security, NEVER allow themselves to appear weak. To that end, in yesterday’s must listen “this week in Bitcoin,” Ansel Lindner brought up this very topic.
In early September 2017, in the week CGC launched, the Chinese government mandated the closure of all cryptocurrency exchanges; and for all intents and purposes, banned Bitcoin, cryptocurrency, and ICOs. Amazingly, the Bitcoin price only modestly fell – from roughly $4,000 to $3,000 - before surging in the next three months to $20,000. Hence, the power of a bull market!
Clearly, the Chinese government significantly fears Bitcoin – yet, more than a year later, only one of the “Big Three” Chinese exchanges is shuttered…while the other two, Huobi and OK-EX, are still business as usual. And just last week, a Chinese high court ruled that indisputably, Bitcoin can be legally owned and transacted with…
https://twitter.com/AnselLindner/status/1060688781756506113
…as cited here…
“Chinese court confirms Bitcoin is protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law because of its property nature and economic value.”
Whether the Chinese government aims to capitalize on the Bitcoin movement; or simply, is scared to fight an unstoppable, decentralized movement is uncertain…though perhaps, the answer is a combination of the two. However, the fact that this ruling occurred on the cusp of a potentially historic Yuan devaluation, below 7.0/dollar, is surely not a coincidence!