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Bitcoin took a beating on Tuesday, extending losses to $ 29,300, a level not seen since January, before rebounding, ending the day at $ 32,000.
The main concern that scared off Bitcoin investors was the news that China is tightening its grip on crypto transactions and mining, shutting down 90% of the country’s extraction capacity.
In addition, the People’s Bank of China has ordered over-the-counter (OTC) transactions to stop.
Saifedean Ammous, author of The Bitcoin Standard, told Kitco News presenter David Lin that technically you can’t ban Bitcoin and historically even after an 80% correction the price has still rebounded.
Ammous is a freelance educator at Saifedean.com, where he lectures on economics and Bitcoin, a former assistant professor of economics at the Lebanese American University and author of his upcoming book The Fiat Standard.
Bitcoin thrives in the face of adversity, he said. Whatever they try to do, in the end and that’s what’s different between Bitcoin and gold [and traditional financial assets] Bitcoin clearance takes place independent of political and banking systems.
Therefore, you can’t really ban Bitcoin per se, you can only ban yourself from the network, he said.
You cannot shut down the network. You can either try to impose conditions on people who use the network, and if people can agree to those conditions, they can continue to use it and deal with your network, but if you impose conditions that are unacceptable to them. users or people who cannot accommodate, you just have to kick all users from your network, he said. You can’t really ban Bitcoin, you can ban yourself from Bitcoin, but Bitcoin continues to work and I think even though it’s going to be a 50%, 60%, 70%, 80% crash, ultimately the ability to bounce back. is what’s gonna win the day for bitcoin.
To see how Ammous refutes some common concerns about Bitcoin as a currency or store of value, watch the video above. Follow David Lin on Twitter @davidlin_TV (https://twitter.com/davidlin_TV).
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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