Hi fellow Steemians I have been really confused lately about China's position and the talks of alleged bans on ICO's, I am far from stupid I would hope, but I will admit that I am a crypto currency newbie. Bearing in mind I don't watch telievision or read any newspapers or daily journals from the main stream media outlets the reason for this I will leave for another blog just know that I am an open, free thinking individual.
MY UNDERSTANDING OF BITCOIN & CRYPTO CURRENCY
It is my understanding that bitcoin and alt coins are decentralized forms of digital currencies that have not been created by central government financial institutions, if I have this basic understanding wrong could someone that is more knowledgeable correct me by commenting on this post. Based on the above statement being true how can China or how will China be able to conduct this ban, will they go to the owner of the blockchain ( this is the platform that the currencies are built on) and tell them that they cannot conduct any ICO offering in China? I thought that Bitcoin and alt coins belongs to no entity hence it being decentralized not attached to any corporation or government body, and it runs based on the security and trust of the blockchain platform and it's users.
WHY ARE PEOPLE PANIC SELLING BITCOIN AND ALT COIN BASED ON HEARSAY.
Have China issued a statement on how they will proceed or the process they will use to enforce this ban, if so could this information be added to the comments in this post thank you. So if my understanding of all the above is correct in my layman/woman way of thinking, why would investors of crypto currency go into a frenzy about China or any other government for a statement made or unmade without any type of process or whitepaper in place to enforce such an action. The law calls this type of behavior hearsay and I never work off the hearsay of a corrupt system that I am trying to rid myself of daily.
CRYPTO CURRENCIES ATTRACTIONS
I got into crypto currencies as I saw the opportunities of being able to lift others and myself into financial freedom, to also get me away from the grasp of the ugly, greedy, corrupt governments, fat cat over paid self indulgent banks and bankers. I took the plunge into crypto currencies Steemit and openbazaar to be my own bank, so that corporations could stop having one over on me. I invested what I could afford to lose a few months ago now, I made the decision in FEAR that was instilled in me by society, government institutions and the constant lies they feed us with that drive us into need and despair. This fueled pushing machine of FEAR which the government, financial institutions, corporations and the media feeds society on a daily basis, making us believe that all the bullshit they feed us is real and for our benefit. This FEAR gave me my greatest courage in a while to take a chance to believe in myself, to be strong, bold and take hold of my life, financial insecurities along with all the lies I was fed for years and be free truly free. I took the leap into crypto currencies to get away from institutional bullying by the few.
SMALL INVESTOR GROWING DAILY
I would ask the financial wizards and long term investors in crypto currencies in the Steemit community to kindly break it down for me in the comment section of this post if any government can stop, cancel, delete or end Bitcoin and alt coins movement? If the government are unable to control digital currency then could someone help me to understand why people are selling in fear, as I think that I must have clearly missed something in the market and I would like to learn as a new investor so I can recognize the governments control in the crypto market, which I was not aware they had any control over.
Images source https://images.google.co.uk/
I seriously would like some help and clarification in this matter, my mother say's if you don't know ask until your know each one teach one living. Do comment, follow, upvote and resteem this post so we can learn and grow as a community love n light.
Done.
#cof
China is gonna China. They've banned BitCoin, IIRC, four or five times now? To quote Fred Wilson, "Whatever China bans, invest in it." There is a lot of mining activity in China (BitCoin Cash is predominately a Chinese play) and some in towns that depend heavily on electricity generation (and thus are also in mining), and they won't go dark. What probably will happen is a licensing regime around BitCoin in China... or they "ban" (only possible on paper, really) one crypto or another, but will "approve" another they will try to control behind their Great Firewall. That situation would be akin to their laws on social media: Ban FB/Twitter, but have their own versions instead. But, basically, when considering China's role in BitCoin/Crypto ignore the FUD and the BS click-bait, and focus on the bigger global picture.
Your other questions...
Nobody owns blockchain. Nobody controls BitCoin. It's 'governed' not by central committee, like the U.S. Federal Reserve or PBoC, but instead by a decentralized protocol. It cannot be 'banned'. Well, on paper yes, but not in practice. Nobody can just take it over. Typical DNS websites can be seized, but once we're done using inverted infrastructure to migrate to DAPPS and we're full decentralization it won't be stopped. In the meantime, impeded by bad policy and FUD? Maybe, probably in some places. But not stopped. To hack and completely take over the Blockchain would require the computing power of the Universe.
As to ICO's, most (not all) have been scammy and there are legit questions as to (1) should this product/service be on Blockchain at all? (2) does the token have an actual use? (3) if a legit start-up, will it survive? Most of these first-wave ICO start-ups will fail. But that's to be expected in a healthy marketplace and it's a natural part of new tech's evolution. I think the 2nd/3rd Wave Blockchain/ICO start-ups will be more successful. So there should be skepticism of most (again, not all) ICO's. But ban them? China has jumped the shark on that one and if it continues to do so, will render itself economically non-competitive in this space in the long-run.
Some countries - like Estonia - will be very Blockchain/Crypto friendly. Others will not be. Capital and entrepreneurs will go where the conditions are best in this space. Cool thing about decentralization is, there is no need for everyone to be in one country or region. So, you can reasonably forecast which countries will do best in Blockchain/Crypto by how friendly their laws are. As for you, as a trader and holder of crypto, if you're smart with your wallet use and are willing to be patient... and perhaps, if necessary, move your coin to whatever exchange you need... you will be fine.
The whole point to trading crypto currency, IMO, is to get more BTC. At that point, it's up to you. Do you HODL? Do you 'reinvest' in other cryptos? Do you put it in cold storage and wait years? Do you go liquid for USD (or another fiat currency), or at least partially cash out? It's up to you.
That said, in 2-3 years BTC will be as fast or faster than Visa/MC processing. With SegWit and Lightning, and other BIP's on the horizon, eventually we will be streaming money. Think about how streaming impacted video and audio... now think about it with money. And once tax laws change to make everyday commercial use easier, mainstream commercial adoption will take off. Future is bright. And at some point in the future, since so much of our lives and market activity is already digital, BitCoin (or other cryptos) might be all you need (sans the legacy USD/fiat payments of loans, taxes, etc.) You will have your own bank on your mobile smart phone.
Why are people selling?
Because FUD. But mostly because BTC was due for a sell off, and profit taking. Nothing goes up in a straight line. Dips are buying opportunities. Highs are profit taking opportunities. What China does, or what some billionaire says is marginal.
Long reply, but seemed worth it. Cheers!