What happens if China decides to lift its ban on Cryptocurrency Exchanges?

in bitcoin •  last year  (edited)

A few months back, China shocked the crypto world when they decided to basically ban cryptocurrency.

At first they banned ICOs. Then they went a step further and shut down all cryptocurrency exchanges.

In effect, crypto had been outlawed in China.

Though that didn't really stop it as most of it's investors went over to Hong Kong as well as a couple other nearby places and started trading over there.

What was so surprising was what happened to the crypto markets when this happened.

At first Bitcoin plummeted by about 50% when the news trickled came out.

The rest of the crypto markets felt the pain even worse, with some coins falling by 70% or more.

However, what happened next was pretty shocking. Over the next couple weeks prices recovered and eventually made new highs.

This was because China was no longer the crypto powerhouse it had been a few years prior, and it hadn't been for some time.

Did markets see this move coming ahead of time and adjusted accordingly?

Perhaps.

However, other countries like Japan had been much more accommodating towards cryptocurrency in recent years and much of the crypto markets had already made their way over there.

The result was that bitcoin and cryptocurrencies didn't miss too much of a beat from the news as much of the heavy lifting as been coming from Japan, the United States, and South Korea.

However, keeping all that in mind, it can't be denied that there is a large opportunity missed by not having China involved in this market.

A 1.4 billion missed opportunity to be precise.

China currently has roughly 1.4 billion people and many of them do not have access to cryptocurrencies, even if they wanted to participate in them.

Imagine the kinds of volumes a country like that might bring were they to start getting involved in the space in a meaningful way.

Now that all that bad news is already priced in, what might happen if China were to say, reverse their stance on bitcoin and cryptocurrency?

There have been several leaks from the region over the past few months indicating that the ban was never intended to be permanent.

Instead it was meant to help the government get in-front of these things and properly regulate and license the exchanges before it got "too out of hand."

Bobby Lee went on CNBC yesterday and shared those same thoughts.

A couple quotes from his interview can be read here:

"In this world, nothing is ever permanent."

"One day I think it's possible they'll lift the ban, so called, and they might reinstitute it and license it."

"Frankly speaking, I don't know what kind of time frame that is, whether it's a few months, a few years or even a few decades, so it's hard to tell."

Lee wouldn't say for sure when he thought that might happen but his point was that at some point he wouldn't be surprised to see the ban reversed.

When/if that happens, what do you think that might do to the prices of cryptocurrencies?

I have a couple guesses...

Stay informed my friends.

Image Sources:

https://themerkle.com/bitcoin-price-endures-a-minor-correction-drops-to-3950-as-china-mining-ban-rumors-circulate/

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El sistema de gobierno chino no permitirá jamás el comercio con Criptomonedas, sin embargo, tiene su propio estado para este tipo de innovaciones "Hong Kong".

I say it's a matter of time before the Chinese government decides to allow the crypto space to flourish. Why not take a contrarian approach when all the other nations are banning crypto currencies? I pretty sure there are some really smart people in the Chinese government already plotting the next move.

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I agree with you. Plus, the signs given recently to support Tron by government-related entities points in this direction.

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no doubt about that.

Are you suggesting that if China lifts the ban then crypto will soar?

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Possibly :) Though, as Lee and others mentioned, there is no telling when that may happen.

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Offcourse, it is a YES-YES-YES chance.

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yes it will contribute to the growth of most cryptocurrecnies as mentioned above 1.4 billion populations and half od them participating in crytocurrencies,it will defintely soar

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I would also imagine that the value would only go up when and if they lift the ban, like you said, tons of people , most of them probably willing to buy I'd they could

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If most of the whales went to HK to trade then I doubt it would soar. It would still mean some sort of cash influx which would cause a rise.

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Don't underestimate billions of retail users...

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I agree sam. BTW uploaded my first DTUBE video on real estate and crypto investing. Cheers and happy newyears!

Especially NEO! I stocked up on NEO just in case China makes it their official ICO platform...

  ·  last year (edited)

If China decides to lift its ban on Cryptocurrency Exchanges then the market cap will instantly grow to 2 Trillion Dollars.

There may be a small bump but most of the Chinese are probably trading over the counter anyway at this point.

NEO reaches par with Ethereum once China comes back into the mix

Nice post, beautifully presented and explained. Detail oriented with nice pics. Thank you for sharing this with us, Upvoted. .

If you mind checking out my blog for latest posts and updats, @kingjan

God, I already had forgotten all about that. No one believes anything they hear on the news anyways... JPMorganChase hate, China hate ... the geek revolution is still rolling ahead... just like it always does. The world will say "Thank you" later (-:

Chinese culture is extremely controlling. It's a to down hierarchy, those up the top want strict controls. Believing the ban will be lifted is day dreaming. What is possible is for Chinese blockchain companies to be given some room to operate, but ones like Bitcoin or even the likes of Verge which focus on privacy will never be accepted.

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The reason why the Chinese government is extremely controlling boils down to social order. If banning cryptos currencies creates social order, then the government will no doubt keep cryptos in their bad books to keep things in status quos.

China people knew they couldnt control cryptos so they chose to construct their own,

its reputed that china national bank is building

its own particular bloch chain and may even have a crypto as a top priority considering Russia people has one..

Carry on your creativity ..I will wait your next one..✌✌✌

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...and in the next couple of days Venezuela will have the Petro.

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chose to construct their own

Interesting...Do you know this crypto by name?

Btw, who owns this comment...you or @joendegz? (See below).

Peace.

How much more ripple will virtual money have in the future?

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I hope Ripple gets dumped/abandoned. It's rediculous where the price is now. Just wrote an article on it. I really don't feel comfortable investing anything in ripple, despite the huge gains.

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it will..as soon people realize that ripple is not even real crypto currency because its fully centralized and controlled by banks

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Banks can generate much more volume and the currency will actually get used by them for a purpose. At the moment a lot of coins aren't just held for gains, whereas ripple has the potential of being used. Centralised or not, it's got backing to be used.

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  ·  last year (edited)

i agree..cripple got all that..
volume: founders promised to burn 55 billion tokens.Now they change mind and decide to realise them gradually..billion per month..and who can say they will stop after 55 months..
speed: it will probably be instant like master card,visa pay pay...small fee for transaction that can easily go up in time..as they want
practical use potential.. yes... shitcoin have it..but what will change ?? Nothing my friend.Banks will change flat currency name from dollar to ripple and continue to control economy and all of us,just on new platform
volume control means centalised,we have that right now..thats why decentralisation and anonymity is most important thing for me

i know..ripple is safe and familiar,we are used to trusting our money to the middle man but that got us where we are right now..in a big hole..

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People are greedy; most will chase the gains😂😂

There is nothing that can stop cryptocurrencies in the long run, only short downswings are possible at this point...

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Well, some random PhD student might actually crack the encryption, which holds this altogether, in which case everything will get fucked. It's all being held together by a simple maths concept, which is difficult to be reversed. Give it 5-10 years and someone will crack it in computational time and the Cloud is going to burn for a bit (and maybe cryptos too).

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That could happen only under the assumption that technology will stay stagnant.

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According to my view and analysis, if China revokes the ban on cryto currency, surely the price of digital currency will jump high in price, because the demand has increased, Especially chinese with a very large population ..😎😎😎

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It should, but cryptos aren't standard equity and don't follow standard econ rules. So even if demand goes up, nothing might happen to the price.

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I agree but believe the majority of the gains will be as a result worldwide of people being more comfortable with the space now that a major uncertainty has been removed. In fact, it could even be perceived as greater certainty exists. Remember ALL money is a confidence game.

It may happen soon ... it will be a huge lift off. Although chinese keep on trading for sure, in low key exchanges

What happens is that NEO will moooooooooon!!

China will lift the ban, once its government has firmly established itself in the crypto markets. Then and only then will they allow their citizens to get into crypto again.

All hell breaks loose, the bubble pops, and those still in get crushed. Lesson to learn: take profits while there still is.

目前已经要求限期关停比特币矿场,比特币矿场将会整顿,但不会遭遇“一刀切”。来自中国的steemit用户。

China knew they couldnt control cryptos so they decided to build their own, its rumored that china central bank is building its own bloch chain and may even have a crypto in mind considering Russia has one

I really liked your article. I'm going to follow you because I like the Bitcoins theme. When you have some time I invite you to read my latest publication

One sentence: To the moon!

The problem I see is that your dealing with countries and the stock markets and the millionaires + and corporations. And if at anytime they consider any form of block trade a threat to their profit or a security threat to their country like in the form of laundering. They will shut it off or ban it.

Also on a side note they can create this condition themselves and then enforce a ban because of it. The ole create problem provide solution we have seen for so long in the govs of countries.

All I can see is when one county does ban it, it all takes a big dip no idea if 2 or 3 did.

Not backed by gold or oil or gas or some form of commodities, or something solid its going to be a high low spiking system for sure.

We are getting drops but I think rises too

The ban was a rumor more than anything else.
source

That could be another huge boost and bring a lt of the “ordinary” Chinese people into it. I believe the traders already moved to Japanese and Korean exchanges and such. Still though 1.4 billion people is pretty big amount that can bring a lot of volume if the ban is to be reversed. At least only good news can come from China from now on.. since they can’t really ban much else. :)

First of all a happy new year. I think that in China they should legalize this issue since the main mining farms are in China where there is a great deal of cryptocurrency traffic. I think the governments that prohibit this are somewhat extremist because they are afraid of this new alternative that can damage their corruption in their economies because as cryptocurrencies are decentralized and do not depend on any government or entity to be ruled over, they fear that. I hope we can continue reading greetings from Venezuela

Cryptocurrencies are for good or bad big business now, so I favor the opinion that the Chinese are biding time to be able to regulate and control a market that is now measured in the billions.

You're right! At this point, China can't do any damage so it is a good bet that they'll want to get back into the game. They're probably jonesing for more control (or working on their own blockchain). Thanks for pointing this out!

good post.bos I want times can be a lot of dollars or help promote I have a boss

I think it would affect momentarily, causing an imminent descent, but it would be a matter of time for it to go back up

You have peeked my interest here, and I will be keeping my eyes and ears on China, do believe this would create a huge spike in price. Thank You.

Honestly, who cares. Separate yourself from your emotions and you end up with a suggestion that you don't have a clue. Love, peace and devotion to humanity.

i believe china were loosing money on a daily basis so they had to ban cryptocurrencies on order to take its time to regulate it properly

Their current stance is hardly surprising considering their history (see below). They will adapt to Crypto as only China does, everything from economic policy to copyright law...in their own way. As has been rightly stated, its their way of controlling its implementation. So back Neo, TRX, GTO and all those other coins that will be well connected, and get face time with the right party contacts. One point to make as well is that when they do soften their stance, China has always had a mentality that is open to mass adoption of emergent technology. Probably why the party is keen to maintain control.

www.businessinsider.com/how-china-went-from-communist-to-capitalist-2015-10?IR=T/

To the moon!

Why some authors make statements that there has never been a ban other say there was. But whatever it is the confusion did affect things badly. However, it is in the nature of cryptocurrencies to experience such sudden upsurge and down fall as they are highly volatile, why you see disclaimers everywhere advising you trade with money you can do without. That being said, I see an eventful year for bitcoin.

The Chinese stop working with this virtual money is a great loss for all because they are technological power, but does not rule out that the virtual currency will be the money of the future because it is the greatest convenience that can be had

If China lift that, I think the price will go more than double this year and it will be a happy new year again! :)

If/when China lifts it's bans it will be a very heavily regulated re-entry for the average Chinese citizen. That will likely have a dampening effect on the pent up demand that must be building over there. It will be interesting to see which side of that equation ends up being the stronger one.

Is neo struggling under these regulations ? Would be interested to see what happens to coins and developers in china if they can get more involved!

Does it matter if China bans it or not? They will fall inline like all the major online retailers (amazon, Airbnb, Uber etc).
The shift is on and who ever doesn’t get on board will be left behind or at a deficit.
Truth

I would imagine we would see new highs then to the moon!

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crypto had been outlawed in China.

Thanks for this post. I generated a post recently about the eeriness of trading on a "foreign" exchange, with the thought of things being 'shutdown' in the middle of a trade.

That said, I have bought a few shares of CNY, because I do believe there's long-term value in this currency, in spite of its current downtrend.

Again, thanks for sharing!

Peace.

Very good analysis, thanks to that we were benefited. thanks for sharing. I follow you.

So that was the reason behind the sudden December slump in crypto? I'm curious to ask what will happen if Indian government too comes up with such ban? After all we are also upwards of 1Billion in population :D

Will the Indian ban have any impact on crypto prices? Though our government has always been susceptible about the whole crypto business since the beginning. Even now the Finance miNistry keeps coming with new warnings and scare threats regarding crypto trading.

I don't think China will ban exchanges, however, they will enforce exchanges services into their regulations, more than ever. Even, last "occidental" news related to China, says that exchanges are gonna be banned, but, in terms of "oriental" news, the translation is: they will enforce them. This could cause the close of some of the exchanges. Also, keep in mind, Cryptoworld provides new places for work.

China is the most capitalist country in the world even though they picture themselves as communists. Always tampering the market on their favor!

Market cap of all cryptos will go to moon....
Imagine how desperate huge Chinese population is right now ,to be banned from entering the crypto race.
If the ban was lifted, billions or may be trillions of dollar investment will come rushing in crypto market from patiently/desperately waiting Chinese investors....

There would be some changes, but soon everything would return to normal, as if nothing had happened. The same scenario would take place as when they did ban cryptocurrency. Sudden change then bam, we're back at the begininng.

I want to know why China banned bitcoin to begin With? Is it because of all electricity going to huge mining rigs? Or because it's a decentralized currency in a communist country?

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I have no doubt that the cryptocurrencies will soar if China lifts the ban, and not just because of the population. The Chinese government has made it harder for their citizens to send money out of the country. Cryptocurrencies offer Chinese citizens a way to circumnavigate government regulations.

For the first time, the loss of Chinese investors temporarily shook prices. If they suddenly return to the game can be worse. This will greatly affect the prices of crypto currency.

China will not do it.

Thank you @ jrcornel for giving us this vision and these facts. It is sure that the fight continues and is far from being won in the crypto-world (but now,you win a subscriber) ;)
We will have to work hard together to change the sphere and show people that it can change everything.

Let's all be united and united in order to get there together.

Take care

P&U

"the old world behind me.. No.. LOOK HERE, BLOCKCHAIN"

if China decides to lift its ban on Cryptocurrency Exchanges
the demand will increase and the value will change

If that happens, the bitcoin would reach unimaginable prices. The capitalization of the market of critomonedas would reach the moon.

The prices will skyrocket even more!

I think regulating ICO's is needed with the ban acting as a band aid China is still participating as you might ban it but that won't stop it!

Food for thought. What is your view on the recent steem rise? Pump or something more sustainable?

  ·  last year (edited)

Thank you for this info. Didn't know about the China out of crypto...will be back soon, in my opinion. Resteemed to see other opinion also.

China will repeal the ban subjected to market demands. Remember the market wins.

this wont effect much now because people understood that crypto is not from only 1 country its a global thing not local thing which can be easily manipulated .

Should that be the reason that NEO is rocketing as well ??

Lovely

It's about centralization of power/control in China

Oh man! I just followed! Thanks!