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It would be interesting to see how this unravels from a game theory perspective. Right now the crypto coin market cap is at around 150 billion USD (up from 15-1
by tudorconstantin 9y ago
It would be interesting to see how this unravels from a game theory perspective. Right now the crypto coin market cap is at around 150 billion USD (up from 15-18 bn in january this year). Not a huge amount by any means when compared to a big country's GDP. The daily traded volume is about 5-10 billions.
If China bans the exchanges now, they basically opt-out from the value created by the flow of some of these billions. Sure, the prices and daily volumes would drop on the short/medium term, but this would only give one last chance to people left out to join and buy crypto at low prices. When the market cap and prices would grow back, China would be left out. Who would trust them anymore to start a blockchain business there?
- alextheparrot 9y agoIt is also possible that a component of Bitcoin's value is transferring money out of China, in which case prices may start to reflect this decrease in utility.
- hbosch 9y agoThe Chinese state does not need money, not even "billions" - power and influence are much more important, and exerting that influence to gain control is much more valuable than any amount of money unless you're talking in trillions. And even then...? There is no "win" for China (the state) by letting its population freely speculate and trade in crypto that they don't control... much better to shut it down.