Bitcoin has shrugged off the overhang from the China trade ban — with China shutting down all Bitcoin exchanges, hoping to get a better control of currency within the country. Bitcoin is proving resilient, having shaken off the folk just a few months ago.
Still, the big overhang is that China is paving the way for other governments to crack the proverbial whip on Bitcoin. Countries have a long desire to control — and track — monetary transactions. Notably, the U.S. — what if the U.S. looks to regulate exchanges and the likes operating within the country?
Call it fear mongering if you must, but things could get ugly quick for Bitcoin. If you thought the move from $5,000 to $3,000 per Bitcoin was fast awn the China news, a formal regulation policy from the U.S. cracking down on Bitcoin could be much worse. Still, I don’t think we’ll see the U.S. roll out a formal plan until 2018. This should come as Bitcoin gains popularity, the U.S. can’t stand aside and lose money and control. They’ll claim regulation is necessary to crack down on trafficking and illegal activities. And while regulators can’t-do much putting a damper on the use of Bitcoin it can strangle companies like exchanges that operate within its borders. While regulation risk is a huge overhang for Bitcoin, bullish U.S. investors have to keep telling themselves — the U.S isn’t communist China.
Article by Millennial Investing