And the Real Reason China is Banning BTC Exchanges is…
Obligatory Disclaimer: To modify a quote from Tim Ferris, “I am NOT a financial advisor, and none of this advice should be taken without speaking to a qualified professional first. Also, my results [are most likely] due to pure luck and zero skill.” But…this is working for me.
I’ve got to be honest here, the recent FUD surrounding China’s “banning Bitcoin” (or more accurately, banning BTC exchanges) has been driving me crazy. It drives me crazy mostly because a scarce commodity is by definition a valuable one, and yet people are still selling like there’s no tomorrow. I’m here to tell you there is a tomorrow, and you shouldn’t be selling.
Working in relief and development I get to meet all sorts of people with all sorts of backgrounds, and today as I spoke with a friend from Asia, the real reason why China is banning Bitcoin exchanges hit us:
President Xi Jinping is preparing for his October 18th reelection, and wants to appeal to his Communist voting bloc.
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, I 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. I’d bet we won’t see Bitcoin prices this low again for a long time. I’m putting my money where my mouth is. Maybe you should be too.
Besides, I’d be willing to be that JPMorgan and other “big money” folks are taking this advice. Calling Bitcoin a fraud can only be a ploy to get the price a smidge lower. You know how these Wall Street types like making an extra buck. Don’t let them beat you to the punch!