How to respond to global digital currency regulatory trends?

It's not because we are good at solving problems, but because we are good at staying away from them. - Charlie Munger

Article Introduction

1. Major exchanges have gradually stopped providing trading pairs of multiple currencies to the United States

2. CME removes Bitcoin futures trading, G20 may introduce measures to unify the regulation of digital currencies

3. Investors should think calmly when facing uncertainty

Recently, whether it is politics, economy, or digital currency, various events and episodes have emerged one after another, and it seems that a storm is brewing.

Let’s take a look at some of the major events related to digital currency that have occurred in the past two days:

1. Major exchanges have successively stopped providing trading pairs of multiple currencies to the United States.

The details of this news are as follows:

Since May, mainstream exchanges such as Poloniex, Bittrex and Gate.io have stopped providing trading services for multiple currencies to US users. In Gate.io’s announcement, we even saw well-known projects such as EOS, XRP, TRN and BTM.

Gate.io also pointed out in the announcement that it will continue to provide trading services for multiple currencies including BTC, LTC, BCH, BSV, ETH, GRIN, etc. to US users.

The reason why these exchanges took these actions is obviously based on two considerations: first, the U.S. government’s recent penalties on several projects involving ICOs have made the industry vigilant; second, it is to cater to the digital currency regulatory policies that the U.S. government is likely to introduce soon.

Regardless of whether the reason behind this is what we estimated, there is no doubt that this will only force big investors to focus more and more on currencies with the lowest risk, largest market value, and best liquidity, so it will definitely benefit the two mainstream currencies: Bitcoin and Ethereum.

In my May 4 article "What digital currencies are institutional investors most likely to buy?" I wrote that given the impact of US regulation and its policies on global investment trends, the two currencies that institutional investors are most likely to buy are Bitcoin and Ethereum. The situation is moving in this direction.

2. Chicago Mercantile Exchange removes Bitcoin futures trading, G20 may introduce measures to unify global regulation of digital currencies

There are also these two pieces of news. The reason why I put them together is that it seems that these two pieces of news are bad news for digital currency, but in my opinion, they are good news for us long-term investors.

There are many theories about why the Chicago Mercantile Exchange removed Bitcoin futures trading, but I don’t think there is any need to speculate too much. The reason may not be complicated, but the trading volume is not large, so it was removed. As for how much impact the removal itself has on Bitcoin trading, I think it will not have a substantial impact because the trading volume is not large.

The G20 may introduce regulatory measures to encourage the world to take unified action to regulate digital currencies. Since the specific measures have not yet been introduced, we do not know how they will be regulated, so it is inconvenient to speculate.

These two pieces of news have brought more psychological fear and pressure to the industry. But in my opinion, for long-term investors, if they are firmly optimistic about the prospects and future of digital currency, then these negative factors are opportunities, which can allow us to collect enough chips at a lower price for a longer period of time, and when the digital currency enters the bull market frenzy, we can win enough profits.

3. Investors should think calmly when facing uncertainty

Digital currency is an emerging field. When we invest in this field, we must first ask ourselves whether we are really optimistic about its long-term prospects.

If we are optimistic about its prospects in the long run, the most important thing is to stay calm and composed during the low period and operate according to our strategy.

Faced with various uncertain information and news, we must carefully analyze their true value and significance. The more turbulent the times, the more we must look at these events calmly and not let external things disturb and disrupt our plans.