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In the last few days, there has been a huge price drop in all cryptocurrencies, Bitcoin hitting a low point of a little over $3,700 earlier today. This is because China has been worrying the crypto-community; banning ICOs and threatening to take action against Bitcoin. If you are not familiar, an ICO is short for an Initial Coin Offering, and is a method of crowdfunding new cryptocurrency startups. People invest in these projects and get the newly created token once it goes public. This is great for legitimate companies that need capital to get started, and want to attract a community before the coin even comes out. This system has allowed coins to raise millions of dollars in a short amount of time and to make their plans a reality. Unfortinutley the crypto-market is not as regulated as the regular IPO stock market, so shady business practices such as ponzi or pump-and-dump schemes are all too common. Because of this so called wild-west of investing, China’s central bank has made the decision to ban all investments in ICOs. This sent the price of cryptocurrencies tumbling and people were starting to panic. To make matters worse, news started popping up that China was going to outright ban Bitcoin by shutting down domestic exchanges. If you have been in the cryptocurrency scene for as long as I have, you may be thinking to yourself that this news sounds familiar, and that’s because it is. There have been multiple occasions where China has threatened to outright ban Bitcoin and prices tumbled. After a short period of time, the news would fizzle and nothing would ever come of it. The prices would soon rise again to pre-panic levels.

The good news about this panic is that according to big Chinese exchanges like OKcoin, the news is nothing but fake news. According to them, they have not been notified by any Chinese authorities to shut down. This begs the question, why does China always threaten to take action against Bitcoin and never actually do anything? Even though for temporary periods of time they have banned deposits from certain exchanges, they have never banned bitcoin. I have a hunch that people are trying to profit from all the panic selling. I can’t prove this for sure, but this same news has popped up on so many different instances its hard to not think that there is something going on. My advice from this whole event would to buy some Bitcoin while it is on sale!

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Refferals to Date; 9/13/2017; (61)