Bitcoin has fallen to $3,000 after BTCC confirmed it will stop trading Bitcoin by the end of September.
Here is the tweet from BTCC;
1/ After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30. 14 Sep 2017.
This announcement coupled with Jamie Domie's comment on Bitcoin has led the Bitcoin community panicking.
If you are among those panicking about what the future holds for Bitcoin, then read this report to restore your cool.
1. What now for China?
We will have to wait to see if China will come out to confirm the rumors that it is closing down all Bitcoin exchanges.
If this were to happen, we might Bitcoin prices sink even below $3,000 - but only for hours until people realize that it means nothing and then the prices jump again.
2. What now for Bitcoin?
What is happening is not the beginning of the end of Bitcoin; it is a simple test for Bitcoin which we have been waiting for forever.
Consider this; Bitcoin was designed to operate as an uncensorable currency, do you know what that means? It means that Bitcoin was actually designed so it will be banned.
Yes, Bitcoin works well when it is banned. When governments ban Bitcoins, it does not mean anything as the network will continue to run autonomous even if 99.9% of all nodes are killed.
Also, by censoring Bitcoin then you are restoring it back to the original form that its creator Satoshi wanted it to be; an anonymous and autonomous currency.
You see, the current Bitcoin wallets and exchanges are not autonomous or anonymous since they are registered and regulated companies who comply with KYC and AML laws.
So, the only ways that a government can "control" and "benefit" from Bitcoin is by legalizing it and then regulating the exchanges and wallets.
However if you push Bitcoin out of the country, then you can no longer "control" and then it will inspire more people to use it. Think of drugs and all that stuffs traded on the black market.
If Bitcoin is banned, its userbase will not go down, instead it will go up:
- Companies seeking to evade taxes will use Bitcoin
- The black market will use Bitcoins
- The wealthy will use Bitcoin as the wealth haven
- Criminals will use Bitcoins
- Anarchists will use Bitcoins
- Cyberpunks will use Bitcoins
- Whistle-blowers will use Bitcoins
- Organizations will use Bitcoins
- I will use Bitcoins
- You will use Bitcoins
- We will all still use Bitcoins
- Eventually the government will learn and begin to use Bitcoins
- Then what? Even God(Churches) will use Bitcoins
3. Won't Bitcoin loss too much mining power?
China alone is responsible for 70% of all Bitcoin's mining power, and this is impressive. But even if China kills all it Bitcoin nodes, it will not affect Bitcoins.
Yes, we repeat, if Bitcoin lost 70% of all its mining power it will still operate and operate even better. Why?
Bitcoin mining difficulty can be adjusted
You see, Bitcoin is simply a code, when it was first launched, the creator was able to mine lots of coins for himself using simple hardware.
If it becomes necessary, the difficulty or proof of work protocol of Bitcoin could be easily modified(in a hardfork) to allow Bitcoin to run on low hashing power.
This system is already in place on Bitcoin Cash as it can be done on Bitcoins too.
We have the Lighting Network
Ok, not everyone would like the idea of another hardfork, but we still have an ace up our sleeves. The Lighting Network infrastructure has already been tested on Bitcoin and proves to make Bitcoin transactions scale up to billions of transactions in seconds with no transaction cost.
All that we are waiting for is for SegWit to be fully implemented on Bitcoin and then the Lightning Network could be installed.
With the Lighting Network installed, it will not matter if there are only two Bitcoin nodes, left. Bitcoin transactions will be instant and free - just like Steem transfer on Steemit.
4. What now for you?
Make no mistake, Bitcoin is not dying, will not collapse and will not fail.
China may censor Bitcoin within its country but that will not affect Bitcoin as Bitcoin was designed specifically to withstand censorship.
Again, it should be no surprise that China is censoring Bitcoins. Bitcoin is an anarchist technology and naturally it has not place in a fascist nation like China.
Bitcoin trading is booming all over the world as news people are now hearing of its and using it. After SegWit is fully implemented, the Lighting Network will be implemented on Bitcoin to make transaction instant and free.
Do not get ahead of yourself; the best days for Bitcoin are still to come.
The best you can do right now is to buy up as much Bitcoins as you can. Bitcoin will recover and don't find yourself left behind with this opportunity to grab some Bitcoin cheap.
Also, stay of alt-coins and Bitcoin Cash. Bitcoin is the most valuable crypto-currency and will continue to be so. However if even Bitcoin is suffering, why risk your funds with some un-trusted crypto-currency?
5. Will Bitcoin die?
Go to coin market cap, you will see over a thousand alt coins. Do you know that all of them were created by Bitcoins? If even these mostly worthless altcoins are not yet dead, how on Earth does Bitcoin die?
Over 100 of the world's top banks including;
- the World's Bank,
- the formidable Bank of England,
- People's Central Bank of China,
- Bank of Canada,
- Goldman Sachs, Santander,
- Morgan Stanley,
- the mighty Barclays,
- BBVA,
- Commonwealth Bank of Australia,
- Credit Suisse,
- Goldman Sachs,
- J.P. Morgan,
- Royal Bank of Scotland,
- State Street,
- UBS,
- Bank of America,
- BNY Mellon,
- Citi,
- Commerzbank,
- Deutsche Bank,
- HSBC,
- Mitsubishi UFJ Financial Group,
- Morgan Stanley,
- National Australia Bank,
- Royal Bank of Canada,
- Société Générale,
- Wells Fargo
are using Blockchain technology(some through R3 consortium and others through other consortiums), did you know that Bitcoin created Blockchain technology?
Did you know that over 1 millions merchants on earth support Bitcoins including; Barclays banks, Google, Paypal, Wikipedia Foundation, Virgin, Fiverr, Stripe, AlphaBay(former biggest online black market), Microsoft, Newegg, LionsGate films, Whole Foods, Dell, The Internet Archive, Bloomberg, Intuit, US State Republican party, US Libertarian party, Shopify, Mint, Mega.co.ng, $Chan.org, Zynga, Telsa, Peace Airline, Namecheap, OkCupid, Home Depot, Reddit, Wordpress, Save the Children foundation, Steam, as well as several adult websites including Naughty America and Playboy.
Bitcoin is more than an a currency, it has evolved into an idea; the idea for a free, open, transparent, autonomous and secure financial system. It is the face of the Sharing Economy and Bitcoin is the hope of anarchists.
Did you know that Bitcoin has a Unicode character, satellites beaning it down from space, light bulbs mining it, ATMs and mining power beyond the world's super computers?
Where on Earth did you get the idea that Bitcoin could die? Do not panic; Bitcoin is only getting started. Bitcoin doesn't need me or you to survive; Bitcoin will outlive us all.
