Panic is in the air, especially in China, where exchanges are closing down one by one. Their government has turned against them, without any public debate or even any hint, leaving the millennial Chinese in a state of perplexed confusion.
Exchanges are ordering their customers to withdraw everything by the 30th of September, just mere two weeks, with hundreds potentially fired from their well paying jobs as a booming industry is all so suddenly closed down by the whims of the authoritarian state.
They are criminalizing entrepreneurship, the right to free exchange, so that the authoritarian government can devalue its currency as it pleases, with no checks or accountability, nor way out.
So the Chinese are selling, with bitcoin in the country at a $400 discount. Just how bigger that discount will get, we will have to wait and see. And just how much their citizens can resist the temptation of literally free money, remains a question too.
Ethereum is facing a similar story. The currency has halved in a few days, down from $400 to just above $200 while trading volumes have gone stratospheric, standing at a global $8 billion.
Vitalik Buterin is in Shanghai currently, with all probably organized before these sudden and unexpected developments, but his presence in that country, or that of any talented blockchain developer, may soon be seen a betrayal of all our principles.
We have nothing against the Chinese people or private enterprise, but just as they have no choice, their government might give us no choice either.
Because this is an assault on all that we stand for. It’s an assault on economic freedom, it’s an assault on private enterprise.
It is also a protectionist move, giving the country an advantage over others. So importing $2 billion we pay their miners, while now closing down the exporting market. Gaining at our benefit while giving us no benefit at all. Unless, that is, we ban them.