The rapid rise in Bitcoin's price and popularity in late 2017 appears to correspond neatly with the rise in scrutiny and scrutiny by governments in early 2018.
Many countries are still staying away from the regulatory process in hopes of seeing how blockchain technology can be applied within the laws of other jurisdictions. Other countries - primarily China - have taken a tough and radical approach to the matter. China decided to completely block access to cryptocurrency, first by banning ICOs, then exchangers, and finally closing access to all foreign sites trading cryptocurrency.
However, the success of these bans is questionable. Ronnie Moas, a well-known financial analyst, believes that talk that the price of Bitcoin will only fall due to investors' fear of such regulations is “just noise.”
He shared his opinion on the impact of such regulations on the price of Bitcoin with a Cointelegraph journalist:
“I don’t attach much importance to these bans. To me, it is just noise, and until China, the United States, Russia and South Korea act with a joint statement like that, I wouldn't pay much attention to it. Bitcoin isn't going anywhere,” Moss said. “I expect the price of Bitcoin to rise to $50,000 - $100,000 in the next few years, regardless of any regulation.”
Moss recommends not to overestimate the Chinese market:
“China bans Bitcoin - over 190 countries around the world are happy to buy whatever they sell or give up. Look at this, for example. happened two weeks ago - the price of bitcoin fell to $6000, but in two weeks it increased by 80% to $11000. There will be regulation, but it will not affect the market as radically as people assume. I don’t think it will affect the largest crypto exchanges. I also think that people are constantly making a mountain out of a mountain. They are worried that 90% of the tokens are a scam. and I don’t care because 95% of the entire market capitalization is in the top 10 cryptocurrencies. And these are the cryptocurrencies that anyone who has studied the market at least a little bit is investing in. You just need to learn to ignore all the noise.”
On the other side of the Iron Curtain
Looking objectively at what is happening in China, one can question the success of the government campaign to eliminate Bitcoin. Bitcoin price rises as blockchain technology continues to evolve.. So what's going on in China? More precisely, how do Chinese citizens and Bitcoin companies cope with such bans?
Huobi, one of the largest cryptocurrency exchangers, which was originally founded in China, has found an alternative. Herbert Sim, one of the co-founders of Huobi, spoke to Cointelegraph reporters about how they dealt with such repression.
"Huobi Global's headquarters is now in Singapore. We also have offices in major cities like Hong Kong, San Francisco. We have many offices throughout South Korea and Japan," he said, pointing out that they can no longer operate directly from China. "Cryptocurrencies are a completely new industry. Governments around the world are looking for the right approach to them. But because they are in the process of experimentation, crypto exchanges can self-regulate."
It appears, at least in the case of Huobi, that China's crackdown has failed to shut down crypto exchanges because they have moved operations beyond the borders of the People's Republic. Sim also added: "Our customer base is still growing exponentially. Users from China can also use our services, but we are an international brand."
Regulation is necessary
It is impossible to deny that the cryptocurrency market needs regulation. Many countries are delighted with the possibilities and potential of cryptocurrencies, but there are also those that exclude the possibility from existence. Those countries that believe they can eradicate it are pursuing reckless and senseless policies. Bitcoin is quite global and in demand enough that people are making every effort to circumvent these restrictions or find those who will happily buy it.
According to http://www.altcointoday.com
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