Once again the Chinese government is hinting about making bitcoin illegal and once again people are freaking out and once again, exchanges are closing up shop. This time BTCC, the oldest Chinese exchange, has announced it will stop taking on new customers in China.
This is not a major surprise coming after China's banning of ICO's last week, but it's important to keep in mind that China has not officially banned bitcoin. Even if they do, people in China will still own bitcoin and still trade bitcoin on other exchanges or locally among themselves.
The concept of China banning bitcoin completely to the point it would be non-existent in the country is ridiculous, unrealistic, and rather improbable if not impossible.
What they can do is cause exchanges some major headaches as far as regulation, much like exchanges in the United States already get to enjoy, but even if they were to regulate bitcoin to the point no exchanges had any desire to conduct business that would only cease operations of Chinese exchanges and there's quite a few other countries hosting exchange platforms.
Along with other bitcoin doom and gloom broadcast by the mainstream media, the price has dropped to nearly $3200. For some this might cause panic time, for others this is most certainly buying time.
The question is how low will bitcoin go and how quickly can it be purchased before it rebounds. The next question is what will it rebound to?
It's been a one-two-three-punch as the mainstream media blast pumped up the China ICO ban, Jamie Dimon's "fraud" name-calling of bitcoin, Mohamed El-Erian's valuation of bitcoin being half of what it currently is, and now Chinese exchanges (at least one, BTCC) heading for the hills.
Naturally that's going to persuade week stomachs to abandon ship, but only until they realize there's nothing to really worry about and this presents a lucrative opportunity for investors jump in. This is particularly attractive to day traders.
Bitcoin Mega-BashIt seems to pour when it rains, or rather the haters seem to jump on the opportunity to "group-bash" bitcoin when the chance presents itself. Who can blame them, this is the nature of people, when shit starts rolling downhill, those who wish it to do so will throw as much as they can on the pile to build momentum.
The truth is however, bitcoin is unlikely to be stopped dead in it's tracks, stopped by any government, stopped by any company or organization, or by any unknown power that may have such ability and the likely hood of every single human being involved in the industry to up and decided tomorrow that bitcoin will be no longer is fairly non-existent.
You'd basically have to get every person on the planet involved to agree to quit. Short of that, the only other option would be cutting of the electricity. All of it. The entire planet.
I'm guessing that's going to be a big fat "not gonna happen".