The WAR on Cryptocurrency Is Heating Up: TODAY Chinese Government Bans ALL ICO's In China. Like The "Land Of The Free" Whats Next? Is This For Our Own Good?steemCreated with Sketch.

in #cryptocurrency4 years ago (edited)

Today, China has banned all ICO's in a major crackdown on the expansion and development of cryptocurrencies. 


I am assuming everyone here on Steemit knows what an ICO is, if not, because its essential knowledge, I will briefly explain what an ICO is for anyone just in case. 

An ICO is an "initial coin offering", which is a way for companies to raise capital without having to rely on the standard practices of banks or venture capital firms. It's kinda like fundraising, because people are getting "tokens" (which have no inherent value and are valued based on the speculation of future value) for their money, but it's also kinda like selling digits which people are investing in because they want to get in on the next Bitcoin before it's worth $5k. 

These coins are generally similar to a stock in a company. If the company does well, then the coin will be worth more. If the company does bad, then the coin is going to be worth less. The entire transaction takes place over the blockchain, i.e. the cryptocurrencies’ decentralized ledger systems. There are no government agencies involved.  No banks, no regulators, nor brokers extorting huge fees - just a voluntary seller of tokens and voluntary buyer of tokens.

Now I am also guessing everyone here on Steemit knows what cryptocurrencies are to some degree. They are digital currencies that work on various rules such as the uber famous kind of crypto Bitcoin but also our beloved Steem!

It is the white paper that dictates how that crypto will work and the blockchain that keeps track of everything. The transparency, low fees, no regultiions/taxation etc has the potential to revolutionize the currency system and governments' total control upon it. Many progressive see this as a great thing. Of course the government does not see it this way, as it loosens their grip of total control. 

It’s not just China. In the "Land of the Free", the SEC has also been busy trying to scare and suffocate certain ICOs and warning companies that are considering issuing tokens.


It's pretty obvious governments don’t like technologies, groups, or companies that are independent and decentralized, so they come up with all sorts of tiresome regulations to make everything more difficult. This generally does not make the quality of life better for the people; it just winds up wasting more and more resources and making success, especially success built upon freedom, more and more difficult. 


Source

As usual, the government is not actually contributing to higher qualities of life, but starving progress and sucking the wealth out of the people.  

We see this in many countries on various topics like homeschooling your own children outside of the state-controlled "education system", which is more like a, institutionalization system. We see this if you try and collect your own rainwater or live off-grid here in the states, of which I know all to well. If you haven't seen any of the tv shows, news articles, or radio interviews I have done, then consider checking out my interview with Ron Paul I shared here on Steemit last year. 

"Ron Paul Interviews Quinn Eaker After Appalling BLACK OPS SWAT Raid"

Of course, the government always claims that they’re "doing it for your own good"...though time and time again, the free market has proven to be far more successful for improving the quality of life than the government. This also brings up the obvious response of if it was for my own good, shouldn't I at least have a say in it?


No, of course you don't - which just proves the government is NOT doing it for our good but their own!


The SEC, for example, which is supposed to ‘protect’ us from the dangers in the financial markets, completely MISSED many major financial scandals, like Bernie Madoff, subprime meltdown, and many other financial disasters from corruption of the mega corps. 

Now, it is true that there’s a lot "shit coins" & lots of fraud and stupidity in the ICO marketplace. 


Most of the ICO's are just plain pump and dump quick money making scams without any real practical value. People are throwing money at every new ICO that comes along with little understanding of what they’re buying, just because they want to get rich on the next Bitcoin.

To be honest, lots of these ICOs are brand new companies which have no profit, no revenue, and in many cases even no product or service at all! Yet they are still seeing the value of their tokens increase 1,000% or more per week.

It’s kinda ridiculous, but this is not rare: 63 out of 68 ICOs listed on the website ICOstats.com have made money. Millions and millions of dollars are being invested into cryptocurrencies, and despite the risks and the high likelihood of the business/crypto failing, people are investing every day in these new ICOs just because they hope to get rich easy like people who invested in bitcoin 4 years ago. 


Many gooberments are now scrambling to regulate or even outlaw cryptocurrencies and ICO's because they are scared that it will make them obsolete. 


Many people such as The Dollar Vigilante think that cryptos will abolish governments completely. This kind of talk, especially when it gets support, scares the shit out of them. 


Now of course, if they actually cared about protecting and helping the people as they claim, then again wouldn't the people have a say and wouldn't they be supporting instead of shutting down revolutionary technologies?

Conclusion

Crypto and blockchain technologies are here to stay, regardless of government crackdowns. However as usual, the governments are making it difficult and stifling progress. Some countries like China and America are adamantly making laws to slow down or try and stop any crypto they don't control. 

Other countries are embracing crypto technologies because they see the the future of it and are going with it instead of against it. 

The war on crypto technologies is only just beginning.  Yet because of the blockchain, intelligent people, and a worldwide network now available via the internet, cryptocurrencies are the future. 

There are a lot of shit coins out there, but there are also a lot like Steem with massive potential to not only make you profit from your investment, but to change the way we do things by providing not just a valuable cryptocurrency but a platform/service to use to our own benefit. 

This war on crypto is likely to scare some away, but in reality is only going to fuel major profits and further adoption of blockchain and crypto technologies simply because it is one of the best ways to bypass the government, which is constantly at war with freedom. 


As always, I appreciate your support and welcome your feedback.

SteemON!




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The "Land of the Free" already banned all ICO's. They were illegal to begin with, because many wont ever past the Howey Test, just people are too legally uninformed to know about it.

How does the government ban something already illegal? All they can do is enforce the laws that are already established. Enforcement is what we have not seen in the USA... why? Bureaucracy. It takes them time to figure this out. When they begin enforcing the laws, projects like TenX will be enforced as illegal in the US. They are already illegal and have been illegal.

This is one of the main reasons, many ICO's do not allow US investors. They know, that it would be illegal for them to sell public securities to US citizens according to SEC regs. Plus other states already have laws such as New York, making ICO's doubly illegal.

Yes you are right of course. Thanks for commenting and clarifying.
I haven't check in on your posts in a while as I have been so busy but I have always really respected and appreciated our contributions.
Thanks again. Hope to see you around soon!

I'm wondering just how long until all governments, China and the United States included, ban all cryptocurrencies except their own. I'm waiting to hear news from Congress, one of these days, that they are going to eliminate all physical forms of currency and switch the dollar to a crypto style of currency. Of course, at that point, Bitcoin and Steemit will be competing directly with the United States and we will all be criminals for owning our own currency.

Stupid politicians will never understand economics. Currency is anything we value. We don't value the dollar as it is tied to your corrupt government.

Yes....This is a very likely future. WE never know but I hope its not.

The only solution really is humanity waking up from their complacent consumer addiction and slavery. Time to take the power back, otherwise its just going to get worse and worse.

Those who have power always want MORE power.

Blessings~*~

Very well written.
As far as China is concerned, it wouldn't surprise me at all if this was simply a ploy to tank the market allowing them to collect a larger stake....their way of trying to control something out of their control.
I don't believe these restrictions will stay in place long honestly.
Another possibility is these restrictions lead to a couple very strong coins built upon the regulations they choose to set.
Time will tell, but it caused a lovely Labor Day Sale!
Sharks love blood in the water and I for one have been on a feeding frenzy!
Thanks for sharing your thoughts.
Now following

Hey @johny-clearwater thanks for the comment.
Yes its possible its a fake out ply of that design. I don't know anything about it but its not out of the question.
What are the couple of coins you are referring to that are set to succeed because of the regulations?
Glad for the follow and I hope to contribute more content of value. I will check out your page and see what you have going on!

SteemON!

What happened is unfortunate however the rate Chinese people use to bring out ICOs is alarming hence the action from their control freak government (Like Unied States government)

Yes control freaks will always have to do something to get back more control.
It is somewhat unfortunate but it is what it is. What matters most is we have STEEMIT!
ahaha

Good point, I agree

Its nice to agree

Donald Trump will be tweeting that Bitcoin Cash is the real bitcoin..

is this a permanent band or a ban to allow time to understand them better, I also saw where they are vising coinbase and others to learn more. just found you and following you now, to learn more

Well as of now its a "permanent" ban meaning it is now illegal to do ICO's in China.
This of course as well as with everything that is "permanent" can change.

Yes there is a lot to learn about crypto and the sooner the better. Its HOT!

@quinneaker
nice one and i think ICO's are helping a lot of folks make some good investments... I heard Etherium is related to one upcoming ICO... if you know of any good ICO and done your DD on it...inform a brother ;)
Thanks as always

Yes ICO's are making a lot of money for a lot of people and that is why governments are trying to regulate it. They don't like it when people make money and freedom without their control.

Yes I am starting to get into some new cryptos, I can try and write a review about some of them.

Blessings~*~

Keep it up then and keep us posted

Yes will do!
SteemON!

This is an excellent article! The government is scared of Crypto because it has a louder voice than their currency ever will!

Glad you like it. I am committed to contributing content of value.

SteemON!

Cryptocurrency is a very good prospect for the future. I think the government can not stop it. thanks, interesting post @quinneaker

Yes crypto has already made many people a lot of money.
your welcome.

They want to force crypto startups to enter, depend, and be approved through there markets (banks, etc.) This will essentially give jurisdiction to them, "the one who legislates is the God of that people."

Yup, classic government tactics.

Great decision by china government

what?
hahahahaha why is that?

China has its own blockchain plan and is setting up their regulatory measures now. It is a necessary move from a long time perspective.

Yes for their government control agenda.

Great. Thanks for sharing. I'm starting to follow you.

Hope this was useful to you and hope to share more valuable contributions in the future.

He is a worthy guy to follow... nice comment @fady2017
which area do you blog on

I'm not against ICO, but there's been so many of them and it's been hard to sort out the good ones. I think we just need some form of regulation. Maybe a decentralized token for regulating tokens lol

hahahaha that is a very interesting idea hahaha

Yes there are a LOT of shit coins but this is what also helps the smart and intelligent ones profit. Because they do the research and are on the cutting edge knowing which tech is worth investing in and not.

Eventualy the shit coins will be weeded out as will the scammers who start them.

Very true and I can't wait for that day to come!

May it be so~*~

Run as you may! You cannot escape...the Almighty Bunghole!

In the long term, it's probably a beneficial thing.

As you state - there are so many shitcoins and scams out there. And as more and more people gain interest in crypto, without ANY regulation, it'd be free reign for a whole bunch more scammers to flock in to take advantage of newbies who don't know shit, and it'd probably end up doing the industry a lot more harm than good.

Yeah, there may be downsides to regulations, undoubtedly. Nonetheless, those who want to play the game are still free to learn the rules - and the hoops to jump through are a sort of character test, requiring players to level up and conduct themselves more professionally - weeding out the masses who just want to become an overnight millionaire with some fad trend and the amateurs who don't have what it takes to lay he solid foundations for long-term success.

More challenges & obstacles = incentive for adaption = constructive evolution.

This may not be the most popular perspective here, but it's at least another worth consideration amidst the many judging regulation...

Thanks for the comment.

Yes I would guess that this viewpoint would not be very common or agreed upon here.

Though I don't argue with any of your points. As you say challenges creative incentive for fine tuning, adapting etc. This is always a good thing.

Ultimately I perceive everything as playing its part of the bigger picture. If there is ever something we don't like we adapt and figure out how to work with in the best way for us.

I am quite sure that governments are not regulating to help or protect people. They are certainly doing it to desperately try and keep control and also pull in extra tax revenues. This I don't like at all however it is what it is and the possible benefit to this is as you say the weeding out of various shit coins.

The biggest problem though right now for chines people and Americans is that now we can't invest in ICO's even if they are good ones because all the ICO's will not be open to Americans or Chinese. So now the countries that are embracing it will have the opportunity to leap forward in progress and profit while we are bogged down with regulations.

Discussion, contemplation and challenge are healthy. Thanks for your input.

I am quite sure that governments are not regulating to help or protect people. They are certainly doing it to desperately try and keep control and also pull in extra tax revenues.

Maybe, maybe not. I'm certain neither of us can concrete state the truth is either/or. Matters like these are multi-layered, and it's more likely that there are elements of truth to both perspectives in play.

Re: Chinese & Americans can't invest in ICOs... VPN. Hoops to jump through. But not impossible. You can still buy tokens on an exchange after the ICO, so could keep things down-low and go the VPN during until post-ICO. (At least in the US - not sure about China).

Yes a very intelligent answer as usual. I really like how you always see the spectrum, yin yang, light dark, good bad, ups downs, etc etc =)>

I agree. I would really like to know more about the VPN stuff and how to get into ICO's that don't allow Americans etc. I am really not to techie and only use computers to Steem for the most part hahaha

I would like to learn a lot more of how to utilize the system and tricks to further freedom and success. Hoping I will get a mentor soon. So many people on Steemit that really know about this stuff.

Thanks for your wise contributions to Steemit!

Get a VPN software - tons of them out there, paid and free. Setup and set the country to one other than the US or China. Access site as usual, without being blocked due to IP address.

Pretty much that simple. ;-)

hahaha seriously? What about all these exchanges that require id, addresses or stuff like that plus then the new ico's have to be moved around in order to be traded or used unless one is just buying them to sit on. Which I guess for some is the point.

Depends on the ICO, I guess. Most are direct, prior to tokens hitting exchanges - like EOS' is direct off the website, just blocking US IP addresses. VPN is an easy workaround, and from there, once your tokens are in your Ethereum wallet, you're good to move around between wallets and exchanges as desired.

Or if it's from an exchange, that is typically post-ICO. As per the EOS example again, I don't believe there are any restrictions saying US citizens can't buy tokens on exchanges like Kraken or even through wallets like Exodus - the limitation is only directly through the EOS site to limit their own liability.

Of course, I wouldn't recommend taking this as advice and the standard situation for ALL ICOs, though this is probably the simplest workaround...

Ok so your saying the limitation is on the ICO and once the coin is able to be exchanged then you can exchange it freely on exchanges?

And yes don't worry I am not taking any financial advise. I always think for my self and only hold my self responsible for my actions. Even from someone as wise as you ;-)>

I do appreciate your answers though. So far you have proven to be a very genuine, helpful and intelligent being. I appreciate that.

Everything is moving so this It's a good signal :) Thanks for the post, I'm learning more and more about what's going on.

Good job!
Learn every day!

Interesting article. China banning the ICO exacerbated the sell-off triggered by the 5,000 price marked for profit taking by major players. Check out this post: https://steemit.com/crypto/@sandalphon/perfect-time-to-buy-bitcoin-and-other-crypto-currencies.

And again! I find it so unfair towards Chinese people.

Government are generally unfair to the people particularly so in China it seems.

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