Bitcoining China: Concise guide to the China-Bitcoin affair
Too many altcoins have popped their noses into the marriage of China and Bitcoins, leading to the relationship touring sour.
Prior to altcoins, Bitcoin and China were doing fine. They were even expecting a child called NEO, until the Chinese began to flirt with altcoins under the excuse of ICOs.
The result was a series of genius and fraudulent ICO schemes, causing the government to put ICOs and Bitcoin exchanges on hold. There has been so much confusion in the air since then.
In this concise report, we will explain to you everything you need to know about the Bitcoin - China affair and how it will affect Bitcoins.
China is not banning Bitcoin
Understand these facts and get rid of your perceptions and confusion;
- China has not banned Bitcoins or made it illegal
- China has not closed down Bitcoin mines
Despite the fact that any of these could easily happen, their occurrence will not affect Bitcoins. Bitcoins has become too big to kill.
Why did China close down Bitcoin exchange?
There are no clear official statements on the stand of China or its future intention, however from what we know, the closure is a temporary move to allow the Chinese government to setup a regulatory framework for its crypto-currency industry.
What that means is that once China is done with legal framework for crypto-currencies, the ban on Bitcoin exchanges and ICOs will be lifted for activity to resume under compliance policies.
The Chinese government is an authoritarian government and they feel crypto-currencies are causing them to loose their grip of money, the economy and their citizens.
What will happen if China bans Bitcoins?
Bitcoin mining will continue
Despite the fact that China powers 70% of all Bitcoin hashing power, if China were to ban its Bitcoin miners still Bitcoin will operate well;
- the mining difficulty could be adjusted to allow Bitcoin to run on low hashing power, just as is already in place on BitcoinCash
- we could deploy the Lighting Network to take all loads of the main net, making Bitcoin scalable to support billions of instant transactions for free
Bitcoin will not loose transaction capacity
When it come to trading volume, currently China accounts for less than 10% of all Bitcoin trading. Obviously if Bitcoins losses Chinese trading volume of 10%, it will make up for from new users all over the world.
Every since China began to close down Bitcoin exchanges, Bitcoin trading has actually returned to a health status in the absence of the Chinese vanity transactions.
What does the future hold?
The future is bright for Bitcoins, not alt coins. Alt coins are mere commodities which anyone can create, however no one can create even one extra Bitcoin.
In the future every celebrity, government, business, banks, institution, website, app/dapp and person will create and own their cryptocurrency. There would be more altcoins than people alive, but only one Bitcoins.
Blockchain technology will power the Internet of Things and the Sharing Economy.
When the next generation discovers Blockchain technology, they will not ask of alt coins. They will not of China and they will not ask of you.
They will ask of the technology that created Blockchain technology and cryptocurrency. They will ask of Bitcoins and they will ask for Bitcoins.
Tom Lee is Head Research of Fundstrat Global Advisors and Former Managing Director of JP Morgan Chase. He has declared that Bitcoins will reach over $25,000 in five years time despite the current challenges!
By the end of this year, Bitcoin should permanently cross the $5,000 line. Dont; miss out of this opportunity to buy Bitcoins cheap.
Since Bitcoin is decentralized and cannot be regulated, the Chinese government is not in favor of Bitcoin.
Agreed. China will not ban Bitcoin and its exchanges. Its ICO ban is also temporary. It hard to imagine a country to ban the Internet Service Providers, just because Internet makes it to easy to circulate fraudulent and illegal information. Impact of cryptographic tokens will have a much greater impact than the Internet itself. It is naive to make policies trying to block this innovation within a country's boundary. I believe Chinese government is much sophisticated than that. Did I mention People's Bank of China has already established a digital asset lab of its own?
agreed!
A build information @blockrush.May this situation can be solved and steem be normal.
Nearly everything you do is of no importance, but it is important that you do it.
- Mahatma Gandhi