Crypto Turbulence as China Bans Exchanges? Why Bitcoin Will Thrive Regardless
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There has been plenty of talk in the cryptoverse lately about China and its actions toward crypto in general. Unsure and novice investors are selling their coins and making wild, doomsday predictions as to what will happen now that China has decided to pull the plug on the crypto market.
This blurb from an article on Techcrunch.com sums up the hysteria:
“Bitcoin is currently down 7.7 percent, Ethereum is down 11 percent, Bitcoin Cash (which is quite popular in China) is down 11.2 percent, etc. But if you go on Chinese exchanges, the crash is even more important. For instance, Bitcoin is down 13.4 percent and Ethereum is down 18.4 percent on OKCoin.”
Well, first of all, we don’t really know for sure what is happening in China as of right now. There is a temporary ban on exchanges, that’s all we know. But whatever they are doing, you have to keep in mind, they are trying to maintain the worth of their real currency during what is essentially a chaotic world market right now. Regardless of what China is doing, if Bitcoin and cryptocurrency in general is stable and worth investing in, it doesn’t matter what China does. The fluctuation we’re seeing in the market are just the chaff being separated from the serious investors and traders. Will some coins lose some of their value? It’s hard to say, but if we know one thing about Bitcoin, it’s that it rebounds, and it does so hard. There is basically zero reason to unload your Bitcoin at this point. I would keep an eye on NEO, but I personally don’t trade in NEO because of how unstable it is. If you are a NEO trader and you are uncertain of its outlook, bail and stick to a reliable coin like BTC or LTE. Until China finalizes what they are doing and quells speculation, the market is going to be unstable, so don’t expect an easy ride.
On that note, keep in mind that it’s only unstable on the surface. If you look at the trends, all but a few alts are growing at a solid rate. Keeping in mind that despite the news coming out of China, Bitcoin has managed to stay above $4000 USD. I would say, even if it dips below mid $3000s, HODL for dear life, because once the dust settles, it will be going back up. If there’s one thing that’s certain in the crypto world right now looking forward, it’s that BTC is going above $5000, probably sooner rather than later. Don’t believe the hype that because China is trying to regulate, that it’s somehow going to bring crypto-trading to a screeching halt. Not even close. If we’re being serious, I would say the opposite. The success and demand for crypto will force China’s hand and require them to open exchanges back up eventually. Also remember that all of this is based on technology that has practical applications. It’s your personal investment in and stake in crypto that gives it value in the first place. Invest in the systems you believe in, and promote them. Get involved. If all else fails, trade into BTC and stick with it for the longterm, since for all intents and purposes, Bitcoin is basically gold. It has value regardless of what altcoins do, and is only going up longterm.