Bitcoin ban China not the end

Bitcoin ban in China is painful, but the fundamentals are still very good.

The bitcoin price tanked hard after the announcement that China will close it all the bitcoin exchanges. The price reached a low of 40% below the previous top and came back a bit after. There is clearly some panic in the markets, but this could be an overreaction because bitcoin is still doing very well and this is a side effect of rising popularity. Furthermore it is not sure yet if they will close permanently. They could re-open under stricter regulations.

Bitcoin today is not as dependent on China as before
Outside of China bitcoin is doing extremely well
Keep your own private keys!
Buy the best hardware wallets

Bitcoin today is not as dependent on China as before

China was the most important market for bitcoin in the previous years. China was even responsible for 90% of the trading volume. Over the last year this changed a lot. Only about 15% of the trading volume comes from China now.

Especially in Japan and South Korea trade volume of bitcoin rose enormously. This means a ban in China will limit the trade in bitcoin only for a small part, beside that the Chinese traders will probably find another way to buy bitcoins.

Outside of China bitcoin is doing extremely well

Before China announced the bad news, bitcoin was doing very well. Professional investors and even nation states started to invest in bitcoin. This is still the case and could easily multiply the market capitalization of bitcoin, so will the price!

Also the Segwit update has just gone through, this will make transactions on the Bitcoin network faster and cheaper. Also the network can be expanded with 2nd layers to create the possibility of smart contracts and micro transactions on the Bitcoin network. It looks like nobody sees the positive aspects in times of panic. Investors often say:

Buy when there is blood in the streets……

Keep your own private keys!

When you buy bitcoins, it is important to keep your own private keys. When you store your bitcoins on an exchange there is a risk you will loose them because of a failure of the exchange, a hack or changing regulations in the country where the exchange is located. The easiest and most secure way to do this is by using a hardware wallet.