China Sneezes Cryptocurrency Crash
The domino currencies are falling again. The values of cryptocurrencies like Ripple, Bitcoin and Ethereum have fallen this morning, dropping double-digit percentages. Ripple lost 29% of its value.
Hope this one gets the cryptocurrency investors in their senses because it seems that indeed government has control, not just ordinary control, but ABSOLUTE control, to regulate and shape the price of these currencies.
As I have noted in the past, if you block exchanges from trading these currencies by revoking their access to banking and financial institutions, the prices would drop. Why? You do not buy Bitcoin and peers with cows or sands, you need real money. So, if those exchanges cannot have access into the financial system, people would neither invest nor redeem. It is simple: a banned exchange will not wire money and cannot issue redeemable cheques. No bank would honour its cheques and no bank would allow it to withdraw cash from its account. Even you cannot send money to the exchange since when you send the real money, it must hit the real bank account before you see the digits in your account. Dealing with exchange and platforms for exchange is the way to regulate this.
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That seems to be what China started doing today, at a very small level. Just that small sneeze, the investors who think they are outside the control of government, are running for their dear coins.
