In case you haven’t been following the news, China has decided to ban ICOs in the country and started inspecting 60 major platforms for potential wrong-doings. At the currenct time, we don’t know exactly what the platforms are, but most likely it’s all the major players in the country.
As a result, the entire crypto-world took a major hit. Prices started sinking without any apparent trace and many belive that this is the end of cryptocurrencies. The bubble has finally burst. Game over!
I am taking, however, a completely different approach: this marks a new beginning. This marks the perfect time to buy some more Bitcoin and those favorite coins you wanted to have but were way too expensive during the recent rise in prices.
Just like EOS – and I still have faith in it, even though the recent ban makes things a bit more complicated – all cryptocurrencies will rebound. Most people selling did so in fear of losing their money. This resulted in prices going down even further and even more people sold for the same reasons.
I think it’s the wrong approach.
Sure, banning ICOs in China – which is massive in the cryptocurrency world – sounds like a disaster. But this is far, far from the truth. I actually consider it a good thing.
Although the entire point of cryptocurrencies, the blockchain and all the amazing technologies and ideas related to this concept – everything is about complete freedom, I do believe that people or entities who try to take advantage of this freedom and scam others should be kept under control.
Basically, we can put it like this: your freedom stops when it starts interfering with my freedom.
The Chinese ban of ICOs will have two effects: the world will finally understand that cryptocurrencies are not something to ignore any longer (because many still think so). Governments will probably follow suite and will try to regulate this. Smart governments will open up their arms and welcome startups in the crypto world and they will have a ton of benefits in the long run.
The second effect that I hope this ban will have is a massive reduction in crappy ICOs. There are so many coins going out out there and so many new companies creating their own coins that inflation can become an issue. Release a ton of crappy coins and the faith in the entire thing starts to fade away.
This ban won’t stop the really good projects from becoming reality! Companies will go the hard route and relocate their business. They will move from China to a different country, they will contribute to the economy there and they will grow. Scammers will probably consider it’s not worth the trouble and this is a good thing.
China’s ban of ICOs actually pushes the entire world of cryptocurrencies into a new era. My take? In less than one year, China will revoke the ban in place and come up with some guidelines that companies will have to follow.
In the end, these companies are making a lot of money and some goes back to the government. It still does and it will do so in the future.
Cryptocurrency is the future. There will be obstacles, there will be corrections, but at the end of the year, the trend will still be upwards. Because, if you think about it, the Bitcoin price has dropped close to $4,000. But don’t forget that early this year, it was $1,000. So, looking at this data shows that, for the year, the Bitcoin grew A LOT. Yes, it would be nice for it to grow and grow and never stop, but such hiccups are normal. You shouldn’t worry. I don’t.
Actually, I consider this to be a great moment for those looking to purchase some more Bitcoin as a great opportunity. Prices are lower and for the next few days the downwards trend will continue, probably. Then – you should buy. Because afterwards, the market will recover and start going up. Companies will announce plans to work around China’s ban of ICOs. Solutions will be found. Things will evolve.
What do you think? Is this the best moment to buy some more cryptos with FIAT coin (real life money) or it’s game over for Bitcoin and all the other coins?
Don’t forget: I am not an expert and this article should not be considered financial advice. There are still risks involved and you alone are responsible for the investments you make and how you spend your money.