The recent FUD (fear, uncertainty and doubt) surrounding China’s “banning Bitcoin” (or more accurately, banning BTC exchanges) has been driving people crazy – selling off their BTC because they think it will drop significantly. The thing is a scarce commodity is by definition a valuable one, and yet people are still selling like there’s no tomorrow. We here to tell you there is a tomorrow, and you shouldn’t be selling.
President Xi Jinping is preparing for his October 18th reelection, and wants to appeal to his Communist votes.
My prediction is this: as soon as President Xi Jinping is reelected — and he will be — conservative, free(er)-trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I wouldn’t be surprised to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits. NEO already seems to be in their good graces.
For now, the Bitcoin price is being held down because of all the FUD, and altcoin prices are following suit. However, we believe that, post October 18, the Chinese floodgates will be opened and the price will easily reach another ATH.
Historically speaking, President Xi Jinping has been one of the largest advocates of free markets China has seen in quite some time, and I expect this trend to continue. But for now, Mr. Xi must appeal to the people who keep him in power: the Communist Party. In my opinion, banning Bitcoin exchanges is nothing short of temporary glad-handing. Supposing this is true, what should we be doing about it?
The fact is, prices are as low as they’ve been for at least a month. We most likely won’t see Bitcoin prices this low again for a long time. Sure there might be a little more of a dip here and there. BTC has been trending up over the long term, and that is what we are interested in
Besides, we are willing to be that JPMorgan and other “big money” folks are taking this advice. Calling Bitcoin a fraud can only be a ploy to drop the price of BTC. The Wallstreeters will do anything to make an extra buck. Don’t let them fool you, stand strong.
Worse Case Scenario
Lets say China sticks to the ‘ban’ after the election. This is not a bad thing
More and more people will start moving towards DEX (Decentralized Exchanges) which means alt-coins like WAVES and BTS (BitShare) will skyrocket. Moving to DEX sounds scary, but think of it this way:
- There is no one company that owns it, so nothing can be shutdown
- There is no one point of failure
- Much less fees = more money in your pocket