MGT Capital Investments Inc. (MGTI)

[Imperial Whazoo]

Just a thought about the effects of the ban on ICOs in China:
Folks need to think about what an ICO is. An ICO is an INITIAL Coin Offering

The existing coins afloat in the world are NOT banned. Trading the existing coins is not banned.

What the Chinese did was ban the new issuance of coins via initial offerings.

OK, since supply and demand dictate value, what happens when there is a closing of the inflow supply valve on a flow system? Is it not true that the closing of the input side of the supply & demand flow ONLY limits the future dilution of the existing pool of value?

Since the closing of the input side does not carve into the size of the available coinage that is afloat, what will happen to the coins that are presently afloat? Will the existing "coins" be more or less scarce due to the closing of the input valve that was allowing for ICOs? Obviously, the existing pool of coins is going to be the same size.

My conclusion? It is not going to be possible to close the entire international system down. All that they can do is limit the increasing size of the coinage pool. Those coins already existing out there are still existing and as such, with fewer competitors for each invested amount, it follows that the coins that presently exist are going to be more scare in relative terms than they otherwise would be if money coming into coins was to have remained increasing at the pace it had been at. So, net net, closing down incoming funds to new alternative cryptos effectively adds value to the current pool of cryptos out there.

Thats my thought.

Imperial Whazoo