The market talks and talks about Bitcoin, calling it either a fraud or a currency of the future. No wonder that monetary authorities and some financiers are trying to talk the price of the cryptocurrency down — they are simply afraid of this new form of currency that may easily take the place of traditional money.
What Are They Scared Of?
Bitcoin's advantages are obvious. While everybody is talking about the Fed's swelling balance sheet ($4.5 trln), which the regulator refuses to audit, Bitcoin just does it on an everyday basis. Bitcoin is audited due to its open-source nature.
The same is true with China and its steps to regulate crypto currency trading. It announced the ICO ban, it stopped crypto transactions on one of the largest exchanges in China, it promised to block any crypto currency trading since October and on Wednesday we learned that Bitcoin exchange heads have been banned from leaving China.
So what are they afraid of? They're scared of alternative. Very strong and transparent alternative, which is poisonous for China known for its “closed” stats data and “drawn” economic indicators.
Bitcoin Doesn’t Care
But judging by Bitcoin's reaction, the market doesn’t care. Indeed by mid-day Wednesday when news of the exchange heads appeared in mass media, digital currency added another 0.51%. Besides, there is a strong feeling that the series of negative comments and fake news of a possible mining ban and blocking p2p network in China is aimed to pressure the currency price. Why? To enter the market at more attractive levels. For example, last Saturday the crypto currency reached $3,900, but as soon as the rumors of the p2p ban appeared, it slid to $3,500. But not for long as Bitcoin trades above $4,000 again.
Conclusion
Read between the lines of any negative news you get — it could give you good crypto-buying opportunities.