China Bans ICOs - "Creates a bull market for established coins"

in #bitcoin7 years ago

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In "breaking news" this morning China has announced that it is banning all ICOs. Bitcoin, Etherium and most cryptos are down a lot as of right now.

However I see this as a very positive an bullish for Bitcoin and other established coins. The fact that they are banning ICOs because they are "disrupting the financial order of things" is just a testament that crypto is being noticed AND it is in fact disrupting China's perpetual debt machnine. Also I just saw an article that Russia might ban Bitcoin mining in private homes. Again, sounds like the state powers want to centralize control over crypto - applying their outdated, centralized way of thinking onto a system that is just the opposite.

BRICS are also considering ICO-ing their own currency to help with settlements. The RT article points out that the "BRICS cryptocurrencies could replace the US dollar and other currencies used in settlements among the member states". This is really a threat to the US dollar more than it is to Bitcoin obviously they are trying to bypass using the US dollar just like china just did. China just issued a statement that they will be transacting oil not in the US dollar but in yuans. Outch!!! The Petro dollar's death is accelerating.

Since we will have less of these random ICO where every Joe Shmoe get a coin (cought Paris Hilton) the capital flight into safe heavens and real crypto assets such as BTC ETH or ZEC can commence. Less ICOs less shitcoins to pollute the crypto ecosystem.

Again, what we are witnessing in the price drop is just uninformed, weak hands being shaken out and of course people taking some profit off the table with this "uncertainty". I really think that the ban of ICO is really just going to create a stronger bull market for Bitcoin and other established cryptocurrencies.

Links to sources:
https://cointelegraph.com/news/russia-may-ban-bitcoin-mining-in-residential-homes-over-electricity-costs-heating
https://www.rt.com/document/59ad2be5dda4c87b128b4567/amp/401969-brics-consider-joint-cryptocurrency
https://www.cryptocoinsnews.com/breaking-chinas-central-bank-bans-icos/amp/
Image source: http://bitcoinist.com/china-syndrome-bitcoin-exchanges-doomed/