Last week, CoinGeek covered how China banned Bitcoin—even more this time—and discussed some of the consequences the ban would have.
Make no mistake; this ban is a lot stricter than the previous restrictions out of China. It declares all digital currency transactions illegal and outright bans transactions to overseas exchanges. This isn’t a mere miner ban or new restrictions on exchanges; it makes the act of transacting in so-called cryptocurrencies an offense. Large exchanges like Binance and Huobi responded quickly by banning Chinese traders from their exchanges.
In a statement explaining the ban, the PBoC said:
In recent years, Bitcoin and other virtual currency transactions have become prevalent, disrupting the economic and financial order, breeding money laundering, illegal fund-raising, fraud, marketing and other illegal and criminal activities, seriously endangering the safety of people’s property.
It’s a sentiment echoed by lots of governments and enforcement agencies around the world. Recently, SEC Chairman Gary Gensler likened the current virtual currency industry to the “Wild West” and vowed to bring it into line.
How did the market react to the China ban?
In what could be a sign of things to come, the prices of some of the most popular tokens, such as BTC and Ethereum, crashed when it was announced.
Despite this, the usual BTC maxis took to social media declaring “Bitcoin bans China” and that El Salvador, a minor economy if it can even be called that, would inherit the earth because it has embraced BTC.
As usual, rather than offer up cogent, well-reasoned arguments for why the second largest economy in the world banning digital currencies doesn’t matter, it was all dismissed as FUD by influencers and social media personalities.
Bitcoin is anti-China technology.
— Pomp 🌪 (@APompliano) September 24, 2021
As usual, Pomp expresses the exact wrong take on the situation….
BSV will survive and thrive in the era of regulation
At CoinGeek, we have been saying for years that taunting governments and telling them they can’t stop Bitcoin is a losing strategy. We’ve consistently advocated that it’s much smarter to work with governments, explain to them how the Bitcoin enterprise blockchain can benefit them and help them stamp out crime, and to respect financial laws.
With every day that passes, it becomes more and more obvious that this was the correct long-term approach. China may have come out the hardest and fastest against “crypto,” but other laws in the European Union and elsewhere will bring the era of crime and anarchy to an end. In the new era of big business, utility, and real-world problem-solving, only scalable blockchains that offer solutions will survive.
BSV was designed to thrive in such an environment. With its infinite scalability, a strong commitment to law and order, and willingness to work with governments to ensure that laws are upheld, it will survive and even thrive in the onslaught that’s to come. As those who have studied it know well, it was released in such a way that it cannot be declared an illegal security, its big blocks mean that miners will be identifiable and can be served with legal orders if required, and its immutable ledger of on-chain transactions can help prevent and solve financial crimes.
It’s almost as if someone thought all of this out in great detail before releasing Bitcoin, isn’t it? This brings us nicely to the next point.
It’s time to get behind Satoshi’s vision
Why will BSV survive the coming government crackdowns, and how did it see them coming? It’s mainly because, despite what his detractors and enemies may say on social media and in their biased publications, Dr. Craig Wright is Satoshi Nakamoto, and he thought about all of this before he released the Bitcoin protocol. He even did his LLM (Master of Laws) in 2008 to make sure Bitcoin was legally compliant.
If you have any doubts about Dr. Wright’s claims, that’s fine. Watch, wait, and see for yourself. These facts will be irrefutably established within the coming months and years as Dr. Wright racks up victory after victory in court and establishes beyond any doubt that he is Bitcoin’s inventor.
However, what you don’t need to wait for confirmation of is BSV’s technical superiority. It already scales to 50,000+ transactions per second, hundreds of fantastic apps are being developed and released on it, and it recently fended off an illegal reorg attack by following the principles laid out in the Bitcoin whitepaper. No other blockchain comes close, and an increasing number of developers are realizing it.
Forward-thinking application developers and long-term industry investors should ask themselves if maybe it’s time to get behind Satoshi Nakamoto, put the silly politics and personal objections to elements of his personality aside and build on the original Bitcoin protocol. After all, if he really is the inventor, which seems increasingly obvious to anyone who has done their research, then this can only end one way, and it’s probably a good idea to listen to what he has to say about Bitcoin.
Crypto is an aberration, and it’s going away
The U.S. and China might not agree on much, but along with the European Union, India, and lots of other powerful governments, they agree that the theft, fraud, money laundering, and financial anarchy unleashed by those who hijacked Bitcoin and birthed endless altcoins cannot and will not be allowed to stand.
What does this mean for the digital currency industry? It means that most of what is promoted today will be declared illegal in many countries and that the original Bitcoin protocol will be one of the only ones that survive.
The industry as we have known it is coming to an end, and it will be swifter than many imagine. That’s not a bad thing, and in the new era that is to come, those who were ahead of the curve and saw all of this coming will be the winners.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.