The crypto crash is reverberating through the Internet while the “rest” of the economy – namely the stock market – enters free fall. Commentary on the very human and thus flawed stock market is still well within the realm of pundits and guys who press funny buttons on TV, whither crypto?
First, the die hards are chiming in noting that they are retaining their investments – HODLing, as it were. Still others are buying. My favorite crypto-pundit, Jameson Lopp, chimed in today:
And the mysterious “Bitcoin content creator” Vortex brings up a very important point:
First, I don’t think this is the bottom of the fall. Expect things to hover around $5,000-$10,000 as the folks begin thinking long and hard about why they’re in the space. I suspect we’ll see a rise in interest as Wall Street bonuses are paid out this month and savvier investors “buy the dip.”
But what cause this and why am I still bullish on the market? First, we have news that China has banned foreign crypto exchanges. Writes CoinTelegraph:
China will add offshore cryptocurrency exchanges and ICO websites to its Great Firewall, the South China Morning Post reported Monday, reported Feb. 5, quoting a publication affiliated with the People’s Bank of China (PBoC).
This sort of news – seemingly definitive and seemingly catastrophic – is akin to learning that the Great Firewall exists at all. In China the Great Firewall is not nearly as effectual as the government would have you believe. While it does lock out the inexperienced or non-technical investor, I doubt many of the miners or crypto exchanges are worried. VPNs – essentially ways to circumvent the Great Firewall – are easily available. In short, this has no teeth.
After all, decentralized networks like this one are designed to route around damage.
Source: Where do we go now?