ANDY HOFFMAN 9/08/17: CHINESE "EXCHANGE CLOSURE" THE LATEST ANTI-BITCOIN FUD

For the fourth time this year; and second this week; "negative news" from China caused Bitcoin, and all crypto-currencies, to flash crash.

As a 15-year veteran of the "Gold Cartel wars," government-orchestrated flash crashes have become a way of life. And after two years in Bitcoin - in which, the laws of "technological dog years" apply, I have been become jaded to crypto flash crashes as well. Heck, not a day goes by without at least one major plunge; and at least every three months, a "major FUD event."

In this case, we started with last week's Chinese ICO ban - which caused Bitcoin to plunge despite the fact that not only is it not an ICO, but it should BENEFIT if an ICO ban were to actually be enforced. To that end, I wrote this article about how BULLISH it was for Bitcoin (https://steemit.com/andyhoffman/@andyhoffman/andy-hoffman-9-04-17-chinese-ico-ban-the-most-bullish-imaginable-event-for-bitcoin) - which subsequently surged from a low of $4,000 three days ago, to nearly $4,700 this morning.

That is, before yet another incoherent, Chinese-translated article emerged, of how the Chinese government may (or may not) shut down Chinese cryptocurrency exchanges. This, whilst explicitly stating that such closures - if the author's "sources" are correct - were NOT due to a Bitcoin ban. To that end, here's the incomprehensible translation of the supposed decree...

The supervisory authority has decided to close the exchange of virtual currency in China , which involves all the currencies and currencies of the currency , such as "currency line", "coins" and "Bitcoin China."

...and here's the positive caveat...

The domestic exchange between all the virtual currency and the renminbi, represented by Bitcoin, Etherfax, Okcoin, will be closed within the deadline; but the regulation is not against the virtual currency itself, nor does it prohibit the one-on-one off-exchange of the virtual currency.

For the past year, I have made it crystal clear that governments will fight cryptocurrency to the death, as it poses the greatest existential threat to fiat currency in monetary history. And that, given Bitcoin's decentralization and immutability, all such efforts will be akin to Don Quixote flailing at windmills. In other words, so long as you HODL your Bitcoins (and Litecoins); hold your private keys; and keep a long-term view; you will be immune, for the first time in history, to government monetary decree.

When will this "FUD event" end? Who knows, but given that last week's Chinese ICO ban price plunge was fully recouped in three days, possibly not very long (except in China, of course, where prices will likely remain at significant discounts to global prices indefinitely). And more importantly, you can bet your life that premiums "off-exchange" - as on localbitcoins.com - will skyrocket.

Strong hands, and a clear mind!