What happens if China decides to lift its ban on Cryptocurrency Exchanges?
A few months back, China shocked the crypto world when they decided to basically ban cryptocurrency.
At first they banned ICOs. Then they went a step further and shut down all cryptocurrency exchanges.
In effect, crypto had been outlawed in China.
Though that didn't really stop it as most of it's investors went over to Hong Kong as well as a couple other nearby places and started trading over there.
What was so surprising was what happened to the crypto markets when this happened.
At first Bitcoin plummeted by about 50% when the news trickled came out.
The rest of the crypto markets felt the pain even worse, with some coins falling by 70% or more.
However, what happened next was pretty shocking. Over the next couple weeks prices recovered and eventually made new highs.
This was because China was no longer the crypto powerhouse it had been a few years prior, and it hadn't been for some time.
Did markets see this move coming ahead of time and adjusted accordingly?
Perhaps.
However, other countries like Japan had been much more accommodating towards cryptocurrency in recent years and much of the crypto markets had already made their way over there.
The result was that bitcoin and cryptocurrencies didn't miss too much of a beat from the news as much of the heavy lifting as been coming from Japan, the United States, and South Korea.
However, keeping all that in mind, it can't be denied that there is a large opportunity missed by not having China involved in this market.
A 1.4 billion missed opportunity to be precise.
China currently has roughly 1.4 billion people and many of them do not have access to cryptocurrencies, even if they wanted to participate in them.
Imagine the kinds of volumes a country like that might bring were they to start getting involved in the space in a meaningful way.
Now that all that bad news is already priced in, what might happen if China were to say, reverse their stance on bitcoin and cryptocurrency?
There have been several leaks from the region over the past few months indicating that the ban was never intended to be permanent.
Instead it was meant to help the government get in-front of these things and properly regulate and license the exchanges before it got "too out of hand."
Bobby Lee went on CNBC yesterday and shared those same thoughts.
A couple quotes from his interview can be read here:
"In this world, nothing is ever permanent."
"One day I think it's possible they'll lift the ban, so called, and they might reinstitute it and license it."
"Frankly speaking, I don't know what kind of time frame that is, whether it's a few months, a few years or even a few decades, so it's hard to tell."
Lee wouldn't say for sure when he thought that might happen but his point was that at some point he wouldn't be surprised to see the ban reversed.
When/if that happens, what do you think that might do to the prices of cryptocurrencies?
I have a couple guesses...
Stay informed my friends.
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El sistema de gobierno chino no permitirá jamás el comercio con Criptomonedas, sin embargo, tiene su propio estado para este tipo de innovaciones "Hong Kong".
I say it's a matter of time before the Chinese government decides to allow the crypto space to flourish. Why not take a contrarian approach when all the other nations are banning crypto currencies? I pretty sure there are some really smart people in the Chinese government already plotting the next move.
I agree with you. Plus, the signs given recently to support Tron by government-related entities points in this direction.
no doubt about that.
Are you suggesting that if China lifts the ban then crypto will soar?
Possibly :) Though, as Lee and others mentioned, there is no telling when that may happen.
Offcourse, it is a YES-YES-YES chance.
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yes it will contribute to the growth of most cryptocurrecnies as mentioned above 1.4 billion populations and half od them participating in crytocurrencies,it will defintely soar
I would also imagine that the value would only go up when and if they lift the ban, like you said, tons of people , most of them probably willing to buy I'd they could
If most of the whales went to HK to trade then I doubt it would soar. It would still mean some sort of cash influx which would cause a rise.
Don't underestimate billions of retail users...
I agree sam. BTW uploaded my first DTUBE video on real estate and crypto investing. Cheers and happy newyears!
Especially NEO! I stocked up on NEO just in case China makes it their official ICO platform...
If China decides to lift its ban on Cryptocurrency Exchanges then the market cap will instantly grow to 2 Trillion Dollars.
There may be a small bump but most of the Chinese are probably trading over the counter anyway at this point.
NEO reaches par with Ethereum once China comes back into the mix
Nice post, beautifully presented and explained. Detail oriented with nice pics. Thank you for sharing this with us, Upvoted. .
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God, I already had forgotten all about that. No one believes anything they hear on the news anyways... JPMorganChase hate, China hate ... the geek revolution is still rolling ahead... just like it always does. The world will say "Thank you" later (-:
Chinese culture is extremely controlling. It's a to down hierarchy, those up the top want strict controls. Believing the ban will be lifted is day dreaming. What is possible is for Chinese blockchain companies to be given some room to operate, but ones like Bitcoin or even the likes of Verge which focus on privacy will never be accepted.
The reason why the Chinese government is extremely controlling boils down to social order. If banning cryptos currencies creates social order, then the government will no doubt keep cryptos in their bad books to keep things in status quos.