For those who have been around this scene for a few years it is like Déjà vu. Back in 2013 and early 2014 there were constant news reports coming out about the legal status of crypto currencies in countries like China and Russia. It is often hard to tell if the stories are over sensationalized and what is real.
I get it, no one wants the Chinese volume to go away and it is causing these massive daily swings but really when it boils down to it in the long run any one country doesn't ultimately matter even if it has a huge population like China. Look at companies like Facebook. You can't access it in China unless you go through a VPN but it is very profitable and will continue to be so.
So if you haven't figure it out yet there hasn't been anything come out that says there will be a death penalty for Chinese HODLing or using Crypto Currencies but anything is possible. Marijuana possession is punishable by death in China so why not expand those harsh laws to something else they can't control?
Also there is a Twitter like communication app in China called Weibo and users have been given a week to link their real identities to it so the Chinese government can more easily spy on them.
I'm sure what everyone who is new to crypto currencies is asking if all these countries could just straight up ban this new technology and the party will just be over. It is possible but honestly it is very unlikely at this point if you ask me. If feel like if were to happen it would have been back in 2011 or something. Now it is reached a point where there would be such a public outcry in a lot of these countries if there was an attempt to outlaw it. Also I don't feel that most the countries would follow along and the smart ones would welcome digital currencies to spur job growth and innovation.
Too many similarities can be drawn to credit card points and the purchase of physical collectable coins made out of precious metals. One of the reason that Multi-Level Marketing never goes away is because that structure is actually really similar to the structures used in things like pharmaceutical sales, insurance sales, and medical device sales. Plus they have enough money for lobbying that it never really gets stomped out.
Even if cryto doesn't have the lobbying groups behind it I just think it is too similar to other commodities that outlawing it would be so broad it wouldn't make sense.
Conclusion
I don't know if crypto is going to shoot back up like we saw a couple of days ago or if it will keep falling like a guillotine. It is largely unpredictable. BTC could go down to $3,000 or shoot up to $6,000.
Just be smart and keep blogging!
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