This is a sad day for our industry. There will be significant "weeding out" with many suffering significant losses. This is a major correction and will take time to digest.
It is most prudent to take a step back and let the dusk settle. No one can stop the industry from moving forward. My greatest fear is that it could lead to over-regulation that will stiflel innovations.
China's Bitcoin Exchanges Receive Shutdown Orders and Closure TimelineCoindesk:
Sep 15, 2017 at 11:28 UTC by Tian Chuan & Rachel-Rose O'Leary
https://www.coindesk.com/document-lists-closure-steps-for-chinas-bitcoin-exchanges/I think this is a perfect example of how
NOT to protect your citizens. Instead of implementing reasonable regulations for the exchanges so the customer is protected, they are forcing these people to use one of the hundreds of shady exchanges that will be popping up in other countries looking to cash in on the Chinese government's blunder.
I can't remember exactly, but I believe over 90% of bitcoin's volume is from China, and I'm assuming any of the other high-volume coins are likely similar. It is going to be very painful for everyone, but especially them. I am very thankful that DNotes did not rush to get listed in China.
Question of the day (that we all know the answer to): Why is it the Chinese government has no problem creating a global bitcoin mining monopoly, but refuses to let its citizens benefit from cryptocurrency?
Exactly Chase. A major challenge in emergent industries is acquiescing to / subverting the existing power structures. In this instance, the Chinese government prioritises restricting the ability of their citizens from being able to send money internationally -- i'm sure there is some rationale behind the risk of them doing so.
People who continue to hold Bitcoin in China will be forced to panic sell, trade with locals who accept it, send it overseas for sale, or use the next phase of Chinese Bitcoin adoption - decentralized exchanges. Innovation and creativity are often driven by regulations such as this, in the same way that Bitcoin was born of the need for an alternative to the modern financial environment. Governments worldwide will be paying close attention to what consumers do in reaction to the government actions - though I believe it should be rather predictable.
1. Consumers move to decentralized exchanges and increases in the use of monero and other crypto that utilize zk-snarks.
2. China will move to create a successful 'in-house' version of blockchain and exchange, in their usual bid to be the best in the world at everything. This could even be NEO, though I suspect there will be a new creation that citizens will have as an only option. In place of using Amazon, Facebook, Twitter, Skype and Google, China created their own versions in: Alibaba, renren, Wiebo, Wechat, and Baidu. The Chinese may well build infrastructure quickly to become what they view as a 'leader' in blockchain space, albeit with limited consumer options.
3. China will want to continue to their crypto mining monopoly because it's an easy transfer of wealth from the west to the east. They will need government approved exchanges or routes to facilitate these transfers. In the same way that when you buy $10 goods at Walmart, the Chinese are making it for $2. The Chinese will encourage, or even subsidise crypto mining in the same model to this end. The punishment for using alternative payment routes to those that are government approved will be severe.
These are a few places to start - The rest of the story is likely to be what the west will do in response to these Chinese actions. For example, western run cryptocurrencies will re-evaluate POW mining as a result of the network (and large amounts of investor wealth) being almost entirely controlled by foreign governments and miners.