I'm sure you've heard the rumors about China's recent legislative activity that would ban bitcoin exchange, and about it's crackdown on ICOs.
So, let's assume the rumors are true.
In my opinion, although it's well known that a majority of Bitcoin mining occurs in China if the country goes through with the ban I think that the end result would be positive for Bitcoin in the long run. If at least some of the mining pools were to leave China, together with the rise of mining operations occurring in other countries, I believe that the result would be an increase in the decentralization of hashpower. Thus, bringing the Bitcoin Network closer to the original goal of a true distributed network, with more miners in other areas of the world being able to profitably mine Bitcoin.
Now, it's true that the mining could still occur in China, and the Bitcoin could just be transferred from an out of country wallet. But, it's also possible that the mining pools decide to move elsewhere. Think about the aftermath of the Bitlicense in NY. So, with less incentive to mine/trade in their own country, it's also possible that some of the smaller pools simply determine its not worth it anymore, maybe even stop. Opening up a greater possibly for miners elsewhere to solve blocks and earn Bitcoin, word spreads about this and other people want to join the fun.
I know I'm making some big assumptions, and have surly missed some key consideration. Please let me know if I have. However, despite a short term price drop and the fact that I would rather China not decide to ban one of the biggest crypto markets, I think that it could actually be a positive for Bitcoin as a whole by lowering some barriers to entry.
I would love to hear your thoughts!