As anticipated, Chinese just ordered bitcoin exchanges to shut down, effectively killing cryptos. Chinese regulators have officially ordered exchanges that trade the Bitcoin (and other cryptos too) to shut down. It was reported just now by 21世纪经济报道 (daily Shanghai newspaper “21st Century Economic Report”):
Statement from 21世纪经济报道 :
Bitcoin China issued a notice: September 30 to stop all trading business
On the evening of September 14, Bitcoin currency, China, said it would cease all trading business on 30 September.
The following is a bit currency China announcement:
China will stop all trading business on September 30th
Dear Bitcoin Chinese users:
According to the principle of interest on the basis of the month, the Chinese made the following decision:
1. Bitcoin exchanges will stop registration of new users;
2. On September 30, 2017 cryptocurrency exchanges will cease trading.
Largest exchanges like BTCC has already obeyed this order and announced that will cease BTC trading on 09/30.
What does it mean for Bitcoin? Well, it effectively kills the cryptocurrencies. Here’s why:
- China is the largest market in capitalization for cryptocurrenciess (though no one knows exactly how much they own, due to anonymity of virtual currencies) and that’s why even rumors from Chinese social media networks are swaying cryptos value, up to 10% per day. Chinese will start selling their coins, driving prices to new lows and beginning chain of Stop Losses for orders on western exchanges too.
- More than 95% of cryptos are mined in China, where you’ll find thousands of farms consisting of hundreds to thousands CPUs powered by free energy from cheap Chinese solar cells. Chinese will have no choice but to cease operations, now or later.
- Other countries may follow Chinese clamp on Bitcoin and a few (like Poland) already issued official warning against cryptocurrencies.
- There are still unresolved issues with cryptocurrencies on fundamental level and there is no government that can adopt it as a mean of payment in any way, because of intangible value of cryptocurrencies.
So what will be next? Selloff on exchanges that will drive especially weaker cryptos like Ethereum or DogeCoin to new lows. Cryptocurrencies are online bubble and there is no place for them in modern free market. So what should you invest now, instead of fake online coins? There are plenty of great opportunities out there, as worldwide economy is doing great and its a very good time to buy ETFs, stocks or trade commodities and it’s still easy to earn a lot on investments – just not on cryptos anymore.