The PBOC and JPM are all Buyers of Digital Currency to Save Their Businesses


The Peoples Bank of China (PBOC) has been making noise for more than a week now causing a sell off in the benchmark digital currencies as the world watched hurricanes Harvey and Irma batter Texas and Florida.

You also have Jamie Dimon is screaming from the mountaintops that Bitcoin is a fraud, and both the PBOC and US Brokers disguised as banks all want a piece of the action because they missed the first leg of the move to the upside and they are concerned they may get left behind. This rhetoric is a ruse, and all digital currencies starting with Bitcoin should be bought on pullbacks – the PBOC and JPM are all buyers, and they would do anything, or say anything to save/justify their businesses.

There are many stories throughout history about asset valuation and how mis-priced many of these have been over time.  But Bitcoin is not a fraud, and digital currencies are not a trade, this is a paradigm shift which will remove the over paid middle man like Jamie Dimon who has basicly run the SEC and groomed the regulatory landscape since the markets crashed in 2008.  This is the start of the battle of titans pitting FIAT Currency against Peer to Peer transactions built on a simple and inexpensive clearing system called blockchain.

Those who trade these alternative currencies accept the volatility that comes with this new asset class, and the Chinese Government attempts to stop the outflow of money from its population is silly at best. Bitcoin, Ethereum and other digital currencies are shaking off the pressure and continuing their long march higher, thoughts of controlling these 850+ digital currencies is a politburo dream.

China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market after the country outlawed initial coin offerings last week.

The PBOC ban will only apply to trading of cryptocurrencies on exchanges, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don’t have plans to stop over-the-counter transactions, the people said. China’s central bank said it couldn’t immediately comment.

Many marketwatchers believe this is a concentrated effort soon to be followed by the SEC in US Markets. This really materialized yesterday when Dimon tried to debunk Bitcoin.  It is a flailing effort at best.

Know it is a frightening thought for these governments watching their currencies flow out of the country into Bitcoin, Ethereum and LiteCoin.  It is equally concerning to guys like Dimon losing control over the wealthy clients who are siphoning off money from JP Morgan and others into unregulated Coinbase Accounts.

The mass exodus from the Renminbi has been noticable and staggering to the PBOC.  Expect the same kind of action in the US as the Securities Exchange Commission will soon lower the boom, and Jamie Dimon is the voice of the SEC and is doing their bidding.  But again it will not matter – the horses are out of the barn.  I think the SEC should focus on the failures at Equifax instead of entering a new marketplace which is working just fine.

Bitcoin slumped on Friday after Caixin magazine reported China’s plans, capping the virtual currency’s biggest weekly retreat in nearly two months. The country accounts for about 23 percent of bitcoin trades and is also home to many of the world’s biggest bitcoin miners, who use vast amounts of computing power to confirm transactions in the digital currency.

The exchange ban is unlikely to have a major impact on the prices of cryptocurrencies globally because venues outside China will continue trading. The country’s role in the bitcoin market had already started shrinking in recent months as authorities tightened regulation. At one point, exchanges in China accounted for more than 90 percent of the world’s bitcoin transactions.

Please stay tuned for our Newsletter where we will be valuing the Top 25 Digital Currencies with some price targets !!!!

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Steve Kanaval Portfolio Manager (Digital Currency) Ault & Company teve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve is one of the few managers who publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. Ault & Company is a private diversified holding company identifying undervalued public & private companies and disruptive technologies that executes strategies to achieve an above market rate return and liquidity for investors while measuring impact and sustainability principles of their disruptive technology and investment strategies.