What do governments do? Enslave people. What do central banks do? Impoverish people. And what do government regulations do? Destroy capital, impoverish people and protect the monopolies of the 1%.
And today we are seeing how government regulations, which is just another word for “threats of violence” and “extortion” can impoverish people and destroy capital while protecting the financial banking monopoly.
And that is exactly what has happened in China this week where the People’s Bank of China, the Chinese central bank, has officially declared ICOs (initial coin offerings) to be an illegal method of raising money.
Not only are ICO and token sales now illegal, but the Central bank has also demanded that any business, fund, or organization that has already benefitted or is currently the beneficiary of such fundraising begin making arrangements to return the funds to their respective benefactors.
A committee led by China’s central bank [link in Chinese], the ones who ordered the ban, made a statement that ICO and Token sales have “seriously disrupted the economic and financial order.”
Which order? The plan for a new world order? If so, good.
But, the Chinese government’s violent acts have caused a bloodbath in cryptocurrencies:
Sure, the Chinese are known for gambling… And have likely gotten carried away with ICOs, but to use guns to make them stop is barbaric and criminal.
In any case, as you can see, this has caused a major sell-off in the cryptocurrencies, particularly the recent ICOs.
Cryptocurrencies as a whole, which had hit an all-time high of $176 billion just three days ago, have fallen 18% since and are currently near $150 billion.
Ethereum, where almost every ICO is based, took a walloping. It was trading near $400 three days ago and traded under $300 at one point today.
One of the issues with Ethereum is that it is one of the least decentralized cryptocurrencies as it is basically managed by Vitalik Buterin's "Ethereum Foundation." And so if the US, which has also been talking about “regulating” or banning ICOs does the same as China we could see a lot of problems with the value of Ethereum.
Is this the end of ICOs? Of course not. Governments are barbaric forms of enslavement that have only one tool: violence. Violence doesn’t work so well when trying to force decentralized databases with no single point of failure to do what you want.
Because China didn’t “ban ICOs”. It threatened to put those that publicly offer or trade them into concentration camps. You can’t ban math on a decentralized system from existing. You can, however, attempt to scare, extort, and coerce people to not deal with them publicly.
And since that is the case, as I’ve said for years, you’d have to be insane to live in fasco-communist countries like China or the US if you are involved in any way with cryptocurrencies seeing as they are some of the most tyrannical governments on Earth.
ICOs will just move away from those countries which will serve to further impoverishing places like the US where any form of entrepreneurialism has been outlawed in one way or another and ICOs will continue in one form or another.
They may move off Ethereum if its centralization proves to be too easy for government to coerce. And that is why I have been and am still a fan of EOS, which I have said could be the Ethereum killer.
EOS got hammered today along with everything else, for those who may want to pick some up on the cheap.
In the short term, this is all quite bitcoin bullish. And I had warned subscribers about getting too heavily invested in the altcoins and ICOs as recently as this weekend, when I said in our most recent Dispatch, “Subscribers may recall that 1-2 months ago I said that the altcoins are looking quite “bubbly” and that I felt the safest and best bet was mostly just in holding bitcoin.”
I went on to say:
I think it’s fair to say we are well into bubble territory now on many of these cryptocurrencies and ICOs. July was the biggest month for coin offerings, with 34 projects raising a whopping $665 million, Tokendata.io data shows — or twice as much money as was raised in the first five months of the year combined.
We have had an incredible run in many of the cryptos and it WILL NOT go up forever. So be prepared for that.
It looks like I was unbelievably prescient yet again! Make sure to subscribe HERE so you get all of our analysis and recommendations.
While many ICOs and altcoins could be greatly damaged the more that governments attack them, they can’t attack bitcoin.
There is no central bitcoin office. No CEO. It’s a self-running application. The only way to stop bitcoin is to turn off the internet.
And, given the massive demand in China and the potential seizing up of a lot of that capital due to this most recent attack by the Chinese government, we could see a lot of that capital that is looking to run, not walk, from the Chinese yuan, flow into bitcoin.
Bitcoin has been dragged down in the sell-off and currently sits just below $4,400.
And Bitcoin Cash has held very steadily and is currently at $540.
Which means that the two combined still sit near $5,000 total. And that total could rise dramatically from here if the ICOs continue to get hit.
I recently interviewed one of the early founders of BitClub, Joby Weeks, when he was in Acapulco. We talked about how BitClub makes it easy to get into bitcoin mining even with a small amount of money.
If you want to find out how to get into bitcoin mining and start today, you should check it out (and subscribe to Anarchast’s Youtube Channel to make sure you don’t miss any future interviews):
If you want to begin mining and unfortunately live in the USSA then you will see BitClub, like almost anything cryptocurrency related, does not accept US citizens due to the nefarious capital controls put in place by the US government.
However, if you do live in the US or are a US citizen, you can still sign-up to Bitclub by downloading a VPN. You can do so by downloading the Opera browser here and following these instructions.
Governments and central banks will continue to try to do everything they can to stop you from getting involved in cryptocurrencies. That’s because they know that if everyone began using cryptocurrencies, their central banking scam would collapse and then government itself would mostly disappear and we’d have peace and prosperity on Earth as you’ve never imagined.
So, just be like me and say “fuck the government” and carry on.
Communism sucks, I know it first hand. I'm from Cuba and spent 25 years in that hell hole. I'm free and a staunch libertarian now! Cryoto investor and follower of the Dollar Vigilante! saludos, looking forward to check out Acapulco.
I always say that Chinese government is very foxy. They are worshipped like God in China. Once we lift its veil, we just know how hypocritical and evil it is! What kind of trick they are good at!
They fool common Chinese who live in a poor life, letting them feel government always treats them well, protecting them from being hurt.
Foxy enough to actually have a lot of its citizens fooled. But look at just the housing market and you can see how utterly inept it is.
Some say that Mao's death count could be 100million. The socialists even messed up the documents. They had no incentives to take a good care of everything.
https://mises.org/blog/horrors-communist-china
https://mises.org/blog/marxist-and-austrian-class-analysis
Here is another funny one: https://mises.org/blog/seattle-seahawks-flee-america-medical-treatment
I'm glad you got out. Saludos Hermano.
Communism does suck. This is my experience with it: http://www.worldsmostextremezipline.com/
I don`t think this action was a bad thing at all for cryptocurrencies. Of course, everything crashed in short term but long term it is a good thing. With that, ICO scammers will have it harder to initialize their scams.
I agree with you, this will only filter the good ICO's from the bad investment. Though there is no clear indication that they will open up for ICO's
Follow me @Yehey
Thank you
At least for projects which are based in china. But sadly, everyone else in the world can still create a scam project and scam people with it.
Since they monitor all traffic, you sure it wasn't just to start whittling down where Chinese crypto-lovers are located?
what do you mean by that ?
by tracking the traffic
what a joke
What are your top three icos to invest in?
Awesome post!
As much as I like the strong position that a de-centralised currency system provides. Unfortunately it's not impenetrable. China banning Crypto's could start other countries following suit.
Its like the idea of banning torrenting files, the film companies have done a pretty good job of making it harder and harder to torrent by getting the ISP's on board to block the torrent sites. Lets hope governments don't start the same thing with the Crypto trading platforms.
That said, I'm not selling, I personally think this is just a good time to buy more!
I bought more today as well! I am worried a bit, but I think crypto will continue to grow.
If you consider that Bitcoin was 3300$USD ish one month ago and only 5billion has deflated from bitcoins market cap.
I would consider this round over and bitcoin has remained victorious.
China 0
Bitcoin 1
I'm buying in slowly but plan to put in a big stake over the next 24 hours.
Too the moon or BUST!
That's a great point! Best of luck on the big buy! How long have you own crypto? I bought my first portions of BTC, ETH, and LTC about a month ago. Right now I mainly use coinbase, but I know that isn't probably the best place to purchase and store large amounts of crypto.
I started mining etherium a month ago with 2 liquid cooled 1070.
Also mining Verium which is CPU only with a bunch of servers.
I use Bittrex for my exchange, I'm down over the past 48 hours 25% but still up overall the month of August.
I've bought a few more LTC and plan to buy more.
I use Exodus for my offline wallet.
Thank you for the info and the advice! I'll look into these things for sure. If I could only regularly buy one crypto currency, what would you suggest?
if your going to stick with a single coin for long term investment. Litecoin would probably be your best bet for now. But understand the risks of investing into a single coin, if it flops all your investments are gone.
Alternatively you could buy Etherium and buy tokens with Etherium, this way your much more diversified.
Thats my opinion anyways.
Good luck!
Beercules
In China, everything decides under the barrel of the gun. The government make choices for people, and people apparently listen to the government. Why would a very centralized political structure support such a decentralized innovation like bitcoin? Yet here we are, still relying on China
they can't stop it :)
well, you are already seeing startups who are providing refunds to their investors. They stopped the innovation. Good for all smart-contract based projects who are not based in china.
Quote,
"There is no central bitcoin office. No CEO. It’s a self-running application. The only way to stop bitcoin is to turn off the internet."
There is so much invested in the internet at this point. Won't their greed ultimately stop them from going so far as to shut the internet down?!
can't happen, the Internet is not one net but a collection of smaller nets connected together.
Gold information thank you
Commenting for to read later. Never want to miss TDV! Flip side: Cryptos are on sale today! Go buy some cryptos.
Upvoted your post. Please see my post this evening on this topic with some additional insights: https://steemit.com/bitcoin/@thoughtchain/why-today-is-the-perfect-storm-for-bitcoin @thoughtchain
Good info bro, keep it up!
Great and informative post. Thank you
good call on the bubble and i reckon bitcoin will come out on top and ever higher prices over the coming weeks
You got my vote and a resteem :]
Very informative post!
They can't really attack bitcoin as long as there is internet.
The United States Government needs crypto. It is their only way out of the debt that they have allowed the Federal Reserve get themselves into. Ultimately I believe the U.S. government will end up issuing their own form of cryptocurrency, with Bitcoin being the bridge for those who are scared by the government into buying it....
Spot on. Fuck the government. I wish I had learned this many years ago. Never too late, though!
Well that blew my mind a little! So much good info just in that one video. Very motivational in my eyes.
F**K the government!!!
Keep stackin that EOS :)
The question is..how many :)
Crypto Sale on NOW... Chinees are good at making things cheaper
It offers great chance to buy
Great read. An authoritarian government is like a road-roller. It squashes everything that dares to rise !!!!
Awesome video, great interview with Joby Weeks! I recommend watching the entire video. Theres a treasure trove of knowledge in this one, especially when they get into the decentralized energy gird apps
These kinds of cryptocurrency bloodbaths is exactly the best time and opportunity to buy more cryptos. Got into NEO today.
There's a pretty strong reaction from China about the news. You're absolutely right. The market is still heading down though wait a little longer.
Oh yea .. I'm totally HODL ... not selling anything, although now I've repositioned and gotten into a bunch of alt coins that have hit their lows ... so waiting to see if any will rally later on.
Nice post another reason to hate china!!
Been loading up on tenx neo and safex
This a very well done post. Thank you
Argh! So that's why all the cryptos are so down! The goverments are always finding a way to screw people. It seems they have nothing better to do!
I do think some of the alts are in a bubble, but there are plenty that are sitting on the launching pad. NEM comes to mind, WeTrust. NEO... that was in bubble territory and it was hit hard.
Wow big news indeed. Definitely can't have people owning too many assets and having everyone be rich. Everyone must be poor and brainwashed.
Way to get carried away with ICOs. Big investors went and complained to the government when they lost on the pump and dumps.
I hope there is more accountability for companies issuing ICO's, but I also don't like the government trying to dictate everything that's going on. But I think the market will bounce back and show that crypto is still the way to go, and that blockchain technology will put power back in the hands of the people. Thank you for this post!
A few months down the road well be thanking the chinese government for this opportunity to buy cheap crypto. All move like this will do is temporarily slow the growth
As always an informative article. Thank you.
Everything the central banks and governments do against cryptocurrencies are only going to make the currencies stronger, because they are antifragile by nature. It was first when I understood this, they my interest in digital assets exploded. So, just bring it on!
one should hold on to their coins and when you see slump like this, buy more. invest for long run and not for short profits. treat the coins like stocks for long run and you will see stability. there may be a lot of negative thought and reviews now but the ones bad-mouthing now will invest more than any other. bitcoins and altcoins are a revolution here to knock off the present market scenario. the ones who invest right now and hold on to it will be a millionaire or hopefully a billionaire in the coming years.
Fantastic article Jeff, thanks.
Why criminals? i think they did a good move.
less scam ico, more discounted crypto for us.
But why did crypto-currencies take a hit if China bans ICOs? The two are not connected except for as you say with Etherium.
I can tell you the PBOC aren't anti-crypto because I know someone who has travelled to China this week to make a crypto presentation to them.
https://steemit.com/bitcoin/@incpress/where-did-the-30-billion-capitalization-go-with-coinmarketcap
What do you think about it?
This post has been ranked within the top 10 most undervalued posts in the first half of Sep 05. We estimate that this post is undervalued by $42.70 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Sep 05 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
We need protection from ourselves, right? One set of parents isn't enough. We need to be parented throughout life from cradle to grave, especially from strangers who slip a hand into our pockets while telling us that everything they do is for our own good. We need to all be thankful that we are all lucky enough to have people watching out for us. I sleep easier at night. Now what's on TV tonight?
good posting
Of course. That was to be expected. They are Communists, never to be trusted.
It's too personal, we think it's time to control ICO and push it into a reasonable way.
Although I am a crypto investor, I must disagree with some points highlighted in the beginning.
First of all, you cannot call bloodbath what has happened today. An overall 18% drop is perfectly in line with the historical volatility of cryptocurrencies. It is easy to become a lover of the crypto world just because they have been surging a lot, but, trust me, if a mere 18% drop scares you, then I suggest you change asset class (maybe German bund might be a good pick).
China way far from being the most transparent country in the world and the way in which it banned ICOs was not the best one. However, the goal of an honest a trustworthy regulator is to protect the weak investor who has not any clue about investing in crypto and can easily ruin his life through taking part to a scam ICO.
As an important guy once said, until the musing is playing, you’ve got to dance. Indeed, we are all dancing. I fear that without any regulation on ICOs or barrier in terms of knowledge required to access them, we will shortly stop dancing and begin crying – as many did in 2007-2008.
Great article.
The banks and governments are trying to discredit cryptocurrencies for one reason: they are scared about about the inevitable disruption that will lead to the collapse of economies as we know them today.