The news out of China over the last week brought quite a shock to cryptocurrency markets.
Bitcoin fell roughly 40% from peak to trough over the last few weeks as the news flow from China seemed to go from bad to worse.
The altcoin market took the news even harder as many altcoins were off 30%+ in a single day.
Just recently, however, we have seen a bit of a recovery in the Bitcoin and cryptocurrency markets as the news flow has changed from "terrible", to "not quite as terrible as we first thought".
Even with the news flow out of China and a couple smaller countries being overwhelmingly negative, Bitcoin/cryptocurrency prices can still go much much higher.
That was the sentiment echoed by Stelian Balta, the Founder and Managing Partner of HyperChain Capital.
Specifically, he had this to say:
"If we look at Bitcoin or Ethereum from a technology perspective, the bad news is not entirely relevant."
Not entirely relevant?
Really?
What does he mean by that?
"If you haven't noticed, miners (including Chinese miners) will continue to mine and developers will continue to create great code and projects."
"Digital assets are a global phenomenon and the ecosystem is in its early days."
That's great but what does this mean that they don't really need China to thrive?
Balta went on to say that they can be just fine strictly from a supply and demand perspective.
"I am very optimistic regarding the global digital assets markets. Digital assets can be considered commodities trading on supply and demand."
"There is a fixed supply of each of one them and demand is only increasing."
Sounds almost like digital gold, perhaps?
"Yes China is an important market and the recent news of exchanges shutting down and ICO funding being banned certainly has a short term negative effect on the prices. However, digital assets are a global phenomenon. Huge Internet businesses like Facebook or Google are banned in China and are doing pretty well."
This last part is especially interesting...
Facebook and Google are 2 of the largest companies on the planet right now and neither is allowed to operate in China.
If they can operate effectively and reach such lofty levels without the Red State, I would agree with Balta that cryptocurrency can as well.
Also...
His "digital asset" reference seems to align pretty well with the United State's definition, as that is the official designation they have given cryptocurrency currently.
Digital gold indeed, the people's currency.
Stay informed my friends.
Sources:
Image Sources:
http://mashable.com/2017/09/12/china-bitcoin-ban-exchanges/#uFvDWMa_caqJ
https://coinjournal.net/down-38-bitcoin-stumbles-amid-regulatory-uncertainties-in-china/
https://futureoflife.org/2016/12/30/2016-actually-year-hope/
Follow me: @jrcornel
Nice post:) I do not think China is relevant for the long term prospect of BTC (or cryptocurrencies in general) at all: China has to adopt to blockchain. I also believe that BTC is antifragile, and that the system gains from disorder. So, all this so called FUD is good for BTC:)
Hey jrcornel,
Thanks for the great content
Interesting FACTS.
Control Control Control.
That is their problem
Exactly crypto is here to stay.
This is the power of decentralization
Keep on steemit.
This will probably be a temporary thing.. China might still come back around. Meanwhile it was a perfect opportunity for investing and getting into the crypto world, or just making some fast profits.
yeah I am totally agree. It was a perfect time for interested people to invest. But like Stelian Balta said, it really does not matter what news are coming. Everyone in the blockchain space (especially on Ethereum/Bitcoin) is working hard and quietly to bring new protocols to work which can really help the society.
Yeah if you aren't already invested in bitcoin, now would be the time to do so. China was just a small setback, but there is still major room for growth as a currency. This type of thing has happened a few times in the past, and it always bounces back and skyrockets. BUY BUY BUY.
Wow thats very optimistic the exchanges are not even closed yet. There could very well be another, bigger setback. Just saying, have some fiat ready
Aaaand we're back up at 5200 ;)
I agree. In my opinion the chinese are just taking a short break to think about the regulations, but will come back with liceced ICOs and exchanges very soon!
I don't think China will ban all cryptocurrency activities. They will make striker regulations so that they have enough controls and give licenses to exchanges and other businesses.
I do not believe China is going against cryptocurrency. It is a country full of very smart individuals, who I believe are trying their best to take advantage of this opportunity. Cryptocurrencies will continue to rise in the future. If the members of Steemit are anything like myself, you should now have friends and family members approaching you about how to get into cryptocurrencies.
Crazy times, trade it X100
https://www.bitmex.com/register/HJfZyC
Good riddance, they will just be left behind or the black market will take care of the volume
Bitcoin will sustain with out Chinas in put! If China let they can no longer play the market as seen in the past years. Look at this as a huge stepping stone where individuals like me and you can by cheap Bitcoin unlike in the past few months! I think by the end of September, October Bitcoin could fall to as low as 1500! What you think?
Very unlikely!
Hope so, then we can all get moar!!
I don't see a reason why it should fall this deep? Everything the chinese government has to say, has been said. Any upcoming news from china can just be good news.
it was a good opportunity to invest
good post
Of course we can survive without China!
Losing their assets will drop the market, but it woyld only be temporary, if that was even the case!
Great info, thanks!
Great point about Facebook and Google! Awesome post. :)
@jrcornel - The analogy to facebook and Google not being allowed in China but still being huge successful operations is a good one I think. It is true that China is a huge market for anything but in the digital context, a specific market place is not as significant as the physical markets. I am sure that bitcoun will continue to thrive in spite of some negative news from China.
Thanks for the update on Steve Balta's statement. Upvoted.
Regards,
A very good point on the two behemoths that are Google and Facebook!
Exactly right, China is just a bump in the road.
I agree 100% we really do not need China for crypto currency to function. They can ban ICO's and close exchanges as much as they like; one thing is for sure bitcoin/cryptos will always be there. Most Chinese will log onto decentralized exchanges and continue to participate in the crypto world. They really caused panic selling and a dip in prices with those announcements. However, after September 30 when they conclude their new rules and regulations; the prices will begin to rise again :)
Some have suggested that increased acceptance Bitcoin and from the like of Japan, India and Singapore and their ability to attract capital inflows will force China to moderate if not outright its recent stance towards Bitcoin exchanges. People there will have to come to the realization that money will follow opportunity.
"Facebook and Google are 2 of the largest companies on the planet right now and neither is allowed to operate in China. "
True that. China is not the world.
Good post @jrcornel :)
Yaaah buttttt, majority of the BTC miners are in China, so the dynamics are a bit different than Google and Facebook
Crypto Currency is a Global Gold.
If somebody doesn't need Gold now. Thet will want Gold later.
Zuck for Prez! jk
Great analogy about google and fb. I think china will be greatly adopting altcoin, but they cant have the classes moving around and increasing wealth on exchanges. The upper classes will still be able to trade. Just as China is tampering with the markets, they dont want ANY outside forces to be able to tamper with the "china approved" coins.
I have a tough time believing that China is banning anything. As stated, they are allowing the miners to operate. If they wanted to ban Bitcoin, the miners would be the first to go.
China doesnt want to ban bitcoin, it wants to control it. Hence, look for a government exchange set up so the Chinese people can buy BTC, on the government's terms.
China has no natural resources. This has caused massive problems for it over the centuries since all had to be imported. China now has a way to be on equal footing with the rest of the world and, if nobody notice, basically took the lead in the world of crypto.
Excellent article.
And let us not forget that even though China used to be a huge player in the crypto markets, if you look at the last six months or so, the proportion of world exchange volume done in CNY has dropped to about 10-15%... to realistically what was painted as "the end of the world," really was just "the end" of 1/8th of the market...
But it's always more fun to panic and run around in a circle than to look at things objectively... ;-)
Bitcoin is dead! Long live Bitcoin!
Sir @jrcornel, one more important and hopeful post you share with us. In which you describe in very detail the ups and down of cryptocurrency, I think it is tamporarily downfall and hope in long term it got high, so hope for best,
I asked my friend if he was running the race, and his opponent (China) had a coach that tripped him.. Would he stop running or take that chance to gain the lead!
@jrcornel
Good article, thanks for sharing, upvoted ✌
As you are interested in crypto, maybe check out my channel and follow me if you like it!
I write articles and crypto guides for beginners and seasoned professionals alike.
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It's OK!
Agree! This is even good, a better chance for others from different country to make more money.
These previous weeks in the crypto-world shows only one thing: Resiliency, cryptocurrency can survive no matter how many obstacles they encounter, thank you for sharing ^^
Nice example of facebook and google, yes cryptocurrency also can grow like these.
Bitcoin was created so that the normal people can have a currency which is not controlled by any government, we have sadly let it still be influenced by a government, it is time we stand up and show that no country or government can influence or control any cryptocurrency!
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Nobody can stop the coins, they are here to stay! And the only way they go is up. Dont look to much on a bit disappointing week, its just a week and the result at the end will make us all happy.
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i totally agree, prices can still go much much higher. Thanks for sharing
Chinese regular consumer will still be using and I assume cause really no setback to the overall growth of BTC..?
All these dweebs freaking out need to simmer the f*ck down and HODL.
Thanks for sharing, nice article.
Good point. I read yesterday, that China is responsible for around 12% of all bitcoin trades. A lot, indeed, but not nearly enough to cause the kind of drops we'we been seeing over the past month. Cheers!
Yes, China is the country that has the largest number of cryptoactive assets in possession and all news of cryptoactive market regulations in China impacts on large price cuts, but it is temporary and circumstantial, then bitcoin is going to rise much more due to the high demand in countries with economic crisis
Cryptocurrency does not need any support of country rather Countries need them for its survival in future
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STOPChina is a huge market and has significant assets which can support global initiatives. However, the government does take an aggressive stance in overseeing monetary policy for their citizens. One side effect is the limiting of overseas choices. They typically compensate by creating national alternatives, thereby reducing the dependency on foreign entities. This has had a detrimental, albeit likely only temporary, to the crypto-currency markets. I expect more such policy decisions in the future for China, but it wont crush crypto permanently.
May it effect the market....
I'm unanimous for this article.
I think that's confused by too much information (A false report is also included.) about this Chinese problem.
When thinking calmly, even if a Chinese exchange is closed, trade is performed overseas.
I think the one by which BTC also became too expensive fell.
The advantage that a cord currency is potential is thinking a currency revolution will make progress in the future more than the present currency greatly.
I have counterreformation influence of course, and thinks I don't advance smoothly.
Not too sure if this is relevant; China is afraid of how the the Yuan is being transferred out at an alarming rate by their citizens to invest in products and real estate overseas. When the central government of China laid down a law to restrict more money to be transferred out by the common methods of remittance and inter bank transfer, the Chinese people had to find new ways to do this. With the trading of bitcoins, they can easily get the money out by buying coins and exchanging it for other currencies.