In the recent news of Chinese exchanges shutting down and China regulating and closing down further exchanges and Bitcoin-related ventures, we are also seeing intense panic-selling and overall speculations of the future of cryptocurrency.
My predictions for the future of crypto and why we will see a massive shift to privacy-centric coins such as Monero, ZCash and Dash.
- China is asking the exchanges to hand over trading data and to make all transactions visible. International traders will most likely move to other exchanges soon (if they have not already), which will have two effects: bounce-backs of cryptocurrencies (at least bitcoin) in the near future - at least when the China news calm down a bit.
- Another effect of the China-crisis is based on the transparency of trading data, which will bring more people to privacy-centric currencies, such as Monero, ZCash and Dash. In the long run we will see a decoupling of altcoins to bitcoin, which means that if the price of bitcoin goes down, this would not affect the other currencies as much. We can already see this on the example of Monero (XMR), which (although there is panic selling everywhere) stays relatively stable in the past days.
- The China crisis also will produce a huge upswing for decentralised, anonymous exchanges. The issues and success of these decentralised exchanges will also be related to the underlying blockchain or DLT system in use, which has to be anonymous and private to work.
In the meanwhile, we will se the market drop further, but with the big difference that projects such as Monero will be recovering faster, and will be decoupling from bitcoin and other pairs faster as well. This is not only because of people wanting to have a true untraceable cryptocurrency, but also since their units are truly fungible.
I am waiting for the markets to bounce back, and i am happy about the dips into cheap XMR (and BTC for that matter).