DrJLT

How to trade as China bans bitcoin mining?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
The widely-anticipated news has finally come: China bans bitcoin mining (https://www.ft.com/content/adfe7858-f4f9-11e7-88f7-5465a6ce1a00).

From the beginning of this month, we already heard that the electricity usage of miners were being restricted. I was surprised to see the rally last week. Now it seems that perhaps a bull trap was set up by some with foreknowledge to escape.

My personal opinion is that we have a different situation than before when similarly bad news hit:

bitcoin wouldn't be worth this price if it weren't for the miners continually pumping.

As ASIC mining becomes restricted, I think this could mark a watershed for the market. Here are some of my predictions:

  • BTG or Qtum may become the eventual beneficiary of this news.
  • Some highly speculative projects will be abandoned.
  • ETH 10k target in 2018 still valid.
  • EOS & NEO will also have some success.
  • Korea may take over mining, but it also may not. GPU-mined coins & POS coins will have better success.
Jan 11
Comment: Korea also bans bitcoin
Nailed it. I'm more convinced about pOs now doc. And all in on ether. Only ones I'd add in like u say is a bit of btg for medium term and neo, qtum, gas and probably a bit of peercoin. There are others my associates like such as factom. I think golem will have some success given the technology and being ether related. Much of the ether stuff is FUD. It's the future ;-)
+1 Reply
Thanks, very interesting article! Do you suggest to hodl the altcoins or how will they be affected if btc fails further?
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DrJLT MarkStarway
@MarkStarway, not clear, really not clear. I'm holding what I have and trying to wait for the bottom to buy more. But some of what I have are not performing and I suspect they'll fall further.
+1 Reply
@DrJLT, thanks for the response. Appreciate it! Good luck!
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Kind of agree with you. Good analysis.

I can see ETH at $2000-3000, i think $10000 is too much. The technology does not warrant that price.
See https://www.coindesk.com/ethereum-time-highs-overshadow-wave-technical-issues/

BTC could rise due to scarcity instead.
LTC should rise, GPU tech and widely used coin.

Keep it up man, good post.
+1 Reply
DrJLT kharma
@kharma, I referenced that article in my other post on eth yesterday.
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@kharma, if 10k doesn't happen crypto is finished. Hint. It will happen. TRADE AT YOUR OWN RISK!!!
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@kharma, the scarcity thing is a trick. Yes forks have worked well so far in a way. I don't think either I or the esteemed doc believe in bch. But it's more of a hinderance right now. One of my associates says btc down to 7k then pump to moon. I guess drjlt would probably see similar events occurring. I guess the miners will pump it to get the use out of their soon to be defunct tech. Yes it will probably hit 50k. But ether is the future imho...
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Doc-al-Citadel Doc-al-Citadel
@qdoc, how many times do you need to see btc fork to realise it's not scarce?!? At some point a fork will usurp the master I guess. I presume it will be post lightening upgrade tho and they will move to pos imho. TRADE AT YOUR OWN RISK!!!
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