China is kicking out the Bitcoin miners – and that is just the start of it. Crypto has come a long way, and as we have been telling readers for years, it has a lot further to go.
Nothing has changed – and everything has changed.
Bitcoin was ignored. Like most things in a dictatorship, unless it has the ability to challenge the power of the state – it is ignored. That is why so many Bitcoin exchanges have their roots in China.
The Chinese people are smart and ultra motivated. It didn’t take long for them to figure out that Bitcoin and other cryptos were a hot ticket – and once it became possible to trade fiat currency for crypto – well simple local corruption did the rest.
Now, Xi and the CCP are serious about ridding China of crypto infrastructure.
The cover story is green, as if China cared about its environment. The real story is the Digital Yuan, and as smart as the Chinese people are, the CCP is pretty dumb.
Does Power Make People Stupid?
We are told that power corrupts, but to us, it is far easier to show that it makes people dumb. The CCP is moving to popularizing its Digital Yuan – aka the first major Central Bank Digital Currency (CBDC).
From the perspective of a technocrat, a CBDC makes a lot of sense.
The Chinese government probably thinks that it will gain more control by going over to a fully digital currency – and for the next decade – they may well be correct (big maybe).
However, the power that is gained today by using CBDCs will be lost soon enough.
People all over the world will realize that any digital currency can be used, and there is no reason to use one that is created and controlled by a central bank or government that is both power hungry and obsessed with terrible ideas.
Probably a Move for the Better
Concentrating a large amount of Bitcoin’s network in China wasn’t a great idea to begin with. Free market principles being what they are – there isn’t much we could have done to stop it.
China has loads of cheap energy, and we…