The smart new world, of which cryptocurrency is a core component, is one filled with technological innovation and economic freedom. With the recent announcement from the Chinese government to ban all cryptocurrency exchanges and also services such as CoinGecko and CoinMarketCap, the new world's foundation has been shaken. This comes on the heels of their decision to ban all things related to crypto and force exchanges to stop allowing withdrawals of cryptocurrencies back into fiat.
China has been the beating heart of the bitcoin world for years now, with the majority of cryptocurrency mining taking place there. It was only logical to assume that the nation will be on board with bitcoin prices rallying, but that is not the case. With China excluding itself more from economic freedom and technological progress by banning services such as CoinGecko and CoinMarketCap, believe that many great and profitable risk-reward moments will be created in the I crypto space.
The market is currently being dominated by the recent news coming out of China, which includes regulatory probes and even a ban on individual rights to owe and use crypto. As long as these trends are in place, it seems impossible for bitcoin to rally. The ban is real, but there will likely be a bounce-back soon, as with other times the Chinese government has used the hammer on bitcoin. This is all about timing, a look back to the history of the China war with bitcoin lends credence to this fact. I see this only making crypto stronger, no matter what the Chinese government does. These restrictions can create short-term risks in the crypto market but also create more opportunities. I think the rewards will outweigh the risks. When the dip arrives, people will buy the dip.
No need to panic, any piece of BTC or other cryptos that is sold must be bought by someone. and you know the dip is the time to make money in the crypto space. The short-term risks may be that the crypto market might go dipper such that short-term investors may find it hard to deal with. However, a bounceback may come sooner than we expected. Let us not forget what happened in June this year, when the Chinese government crackdown on mining factories in the country create unprecedented tension and panic in the crypto space, forcing BTC to go dipper from $60k to as low as $29k. In the following months, we saw how the crypto market underwent correction. The time may not be good for short-term investors, but those with patience will benefit more from the present crisis in the crypto space occasioned by the china ban on crypto.
This is a great opportunity to accumulate more coins as you can. It's also the right time to buy more crypto with fiat currency. With this crackdown in China on cryptocurrency and blockchain technology, many are hoping that things will calm down soon. On the other hand, some are also concerned about what the future may hold, especially with regulators from other governments still in charge. Also, a number of companies that have been built on top of blockchain tech are currently facing scrutiny and have had to rethink their business plans. All these factors may bring short-term risks, but there is likely going to be a bounceback sooner than expected.
Conclusion
With the crackdown coming in from China and the ongoing censorship in other countries, it is clear that the time for the acceptance of crypto to go mainstream has arrived. The global crypto market is way too far and large for a single nation to handle. But with the growing popularity of cryptocurrencies, it is likely that governments across the world would find a way to incorporate crypto into their financial system alongside a local digital currency. With this as a backdrop, there is little chance that the crypto market will decline in the long term.
I believe the value of bitcoin will continue to climb in the long term. Even as we have seen short-term crashes, Bitcoin has proven time and again that it has the power to bounce back from even the most daunting of odds. The current state of the world is just another kind of crisis that bitcoin has the ability to resolve.
I look forward to your comments and feedback on the matter. Cheers!
I'm very suspicious about this China ban, I think they are cooking up something bad.