Criminal Chinese Government Crashes The Cryptocurrency Market

in #bitcoin7 years ago

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.

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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.

China flexed its muscles today and banned ICOs. You'd think this would free up funds of crypto investors and drive them over to Bitcoin since ICOs are managed under ETH. But so far all we have seen is a negative impact. Governments that want to crash Bitcoin are watching and learning.


http://www.FlippyCoin.com is the #1 Cryptocurrency Exchange!

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/

There is a safe haven from the falls, it is called EmberCoin (Check my blog to get more information on this new coin):

https://steemit.com/embercoin/@lasseehlers/embercoin-embercoin-is-a-safe-heaven-while-high-value-crypto-currencies-are-falling-in-price-it-might-be-that-china-bans-ico-s

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

ChinaIcoBan.jpg

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

Great advice! Definitely want to have my hands in both. Thank you!

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.