Political Theater is Alive & Well - Crypto FUD & a BTC selloff yet again!
Political Theater

Political Theater is Alive & Well - Crypto FUD & a BTC selloff yet again!


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It’s Friday September 24th and most of us have woken up to yet another rejection of BTC at the $45k mark. It was naturally a resistance point to overcome based on the technicals, and remarkably China makes its 10th or 11th “Banning Crypto” statement. Well timed indeed. The markets reacted like they always do with a major selloff as people screamed “bloody murder”.

The crypto market is already a spooky place to be as there is break-neck innovation happening. Regardless of fundamentals, social psychology often rules the day. When confronted with uncertainty, most people will behave predictably. It is because of this that governments and crypto whales are able to move the markets in any direction they please.

In order to not be overwhelmed or make a decision not in your own favor, it is important to get off the “dance floor” and onto the balcony for a broader picture of what is happening. It is there that you will be able to make a sound decision and not a knee-jerk reaction.

You see, while we are on the dance floor, we hear China is banning all crypto activities. We sense risk to our investments and want to move them to a safer place, perhaps into a stable coin or back into fiat currency. On the balcony however, we can soak in the bigger picture. That is, ANY government seeks two things, power and control. In China’s case, they want their Central Bank Digital Currency (CBDC), the digital yuan to be the premiere currency. It is smart, it is programmable and it is perfect for tracking its people’s behavior and patterns.

Incidentally, I doubt they are acting alone. We have known for sometime that the Bitcoin hashing power is far too centralized in China and it would do well to be more geographically dispersed to increase both security and trust. Go back to the last hash crash and that is exactly what happened. China made a bunch of noise and miners started relocating outside of its borders. This is orchestrated.

The global financial systems are getting overhauled with blockchain technologies. Nothing is going away. In fact, the move to blockchain will only accelerate. Governments will push the stable coin narrative and we will all fight for sensible regulations on the rest of the crypto market so that businesses and individuals can prosper.

With this in mind we need to stop reacting and start planning how we want to interact in the blockchain ecosphere. I for one will not get scared off. I will continue to invest in sensible coins, tokens and projects. I am not planning for failure, I am planning to win.

Major media claims China’s concerns about crypto are around protecting its people from volatility, rug pulls, pyramid schemes and criminal activities. You know, the exact same thing that has been happening with fiat currency since its invention. Resist fear, embrace the unknown and see you on the other side!

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TheCryptoDan
TheCryptoDan

For the last 24 years I have worked in the semiconductor industry. I have studied blockchain technology at MIT and I am currently working on a MSc. in Blockchain and digital finance.


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