Bitcoin Supporters React to Chinese Exchange Ban with Defiance
- The price of Bitcoin is now just above $3270 due to news that Chinese regulators want to ban trading.
Following the apparent conformation that Chinese financial authorities are actually going to ban Bitcoin exchanges from operating in the massive emerging market, the price of the cryptocurrency is now trading at just above $3270 - down from a record high of $5000 earlier this month.
Learn how to buy Bitcoin and Ethereum safely with our simple guide!
Bitcoin advocates have came out in force in online community forums and on social media to say this is just a buying opportunity because they expect the price to rise again. Their main arguments are that no one can ban Bitcoin itself due to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term technology at its core and that the news that government regulators (and bankers such as JPMorgan CEO Jamie Dimon) are attacking it proves Bitcoin is a growing threat to them.
Market Reactions
No Government can stop the rise of crypto now. Bankers begin to panic. The old ripoff financial systems are crumbling. Beautiful! #bitcoin
— Kim Dotcom (@KimDotcom) September 14, 2017
Rob Viglione, co-founder of ZenCash, commented: "The big question is whether this shock is already internalized into asset prices, or if there’s risk of a continued cascading sell-off. One good thing about crypto markets is that they are largely equity-based, and not massively interconnected webs of leveraged derivatives with unknown counterparties, as is the norm in modern banking. The China ICO ban and the cessation of trading certainly have deep initial impact to prices, but also a much smaller marginal contribution to systemic risk than we’re used to seeing from large financial institutions, like Dimon’s JPMorgan."
The deadwood of the Bitcoin ecosystem is leaving now. Our faith in the crypto economy will be well rewarded.
— Tim Draper (@TimDraper) September 15, 2017
Bharath Rao, CEO of Leverj, a decentralized platform for cryptocurrency derivatives trading, said: "For those of us in the exchange space, the possibility of governments clamping down on exchanges is a foregone conclusion ever since bitcoin was first noticed by the government.
The price is always a solid metric of the markets’ greed and fear, and reflects regulatory uncertainty at the moment. This also signals that development of non-custodial and decentralized models will accelerate. Regulation is neither necessary nor possible for decentralized models, and the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges."
Following the apparent conformation that Chinese financial authorities are actually going to ban Bitcoin exchanges from operating in the massive emerging market, the price of the cryptocurrency is now trading at just above $3270 - down from a record high of $5000 earlier this month.
Learn how to buy Bitcoin and Ethereum safely with our simple guide!
Bitcoin advocates have came out in force in online community forums and on social media to say this is just a buying opportunity because they expect the price to rise again. Their main arguments are that no one can ban Bitcoin itself due to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term technology at its core and that the news that government regulators (and bankers such as JPMorgan CEO Jamie Dimon) are attacking it proves Bitcoin is a growing threat to them.
Market Reactions
No Government can stop the rise of crypto now. Bankers begin to panic. The old ripoff financial systems are crumbling. Beautiful! #bitcoin
— Kim Dotcom (@KimDotcom) September 14, 2017
Rob Viglione, co-founder of ZenCash, commented: "The big question is whether this shock is already internalized into asset prices, or if there’s risk of a continued cascading sell-off. One good thing about crypto markets is that they are largely equity-based, and not massively interconnected webs of leveraged derivatives with unknown counterparties, as is the norm in modern banking. The China ICO ban and the cessation of trading certainly have deep initial impact to prices, but also a much smaller marginal contribution to systemic risk than we’re used to seeing from large financial institutions, like Dimon’s JPMorgan."
The deadwood of the Bitcoin ecosystem is leaving now. Our faith in the crypto economy will be well rewarded.
— Tim Draper (@TimDraper) September 15, 2017
Bharath Rao, CEO of Leverj, a decentralized platform for cryptocurrency derivatives trading, said: "For those of us in the exchange space, the possibility of governments clamping down on exchanges is a foregone conclusion ever since bitcoin was first noticed by the government.
The price is always a solid metric of the markets’ greed and fear, and reflects regulatory uncertainty at the moment. This also signals that development of non-custodial and decentralized models will accelerate. Regulation is neither necessary nor possible for decentralized models, and the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges."