One of the biggest stories in 2021 is that China bans Bitcoin mining. On the one hand, the news did affect the price of Bitcoin and provided ammunition for opponents who believed that the government would ban Bitcoin. On the other hand, the network continues to work normally, Restore its computing power In record time, and gains from decentralization. However, a problem still exists. Why does China exclude itself from this very lucrative activity they dominate?
As Bitcoin entrepreneur John Carvalho pointed out less eloquently, “I refuse to believe that China is stupid.” There must be a reason, even if it is simple. To help our audience solve this problem, NewsBTC decided to concentrate all our theories in one post.
China Ban Theory #1: Digital RMB CBDC
This is the simplest.When China started cracking down on miners, NewsBTC reports: “As for possible reasons, Lucas Nuzzi of Bitcoin Magazine cited the upcoming digital currency CBDC.” Nuzzi said: “They are actually launching their own token (CBDC), which will be able to hold different Politicians conduct large-scale surveillance and cancel banking operations.”
1/ The CCP officially banned #Bitcoin It should not be surprising.
They are actually launching their own token (CBDC), which will enable dissidents to conduct large-scale surveillance and cancel banking operations.#Bitcoin The opposite is true. Dictators don’t like free money.
-LucasNuzzi (@LucasNuzzi) June 21, 2021
So, did China kill a potential $1 billion industry just to suppress competition in CBDC? Is that right?
Chinese ban theory #2: power outage
Does China have energy problems?exist Same article, We came up with another theory:
“In retrospect, we should have seen it coming. Just two months ago, after a suspicious power outage, News BTC report:
According to the Beijing Bureau of Economics and Information Technology, there are concerns about energy consumption associated with these activities. The Paper quoted Yu Jianing, the rotating chairman of the China Blockchain Committee, as saying, The country’s environmental requirements may lead to more “strict supervision” of crypto miningJianing said that this will be “inevitable.”
But if this is the case, will they close the small hydropower station?
China Ban Theory #3: Clean Energy
ourSmall hydropower station report‘The source is government-regulated media, so please be cautious. It starts with a proposition that seriously conflicts with Theory 2:
“According to the article, the heyday of China’s private power plants was the beginning of this century. Investors built thousands of hydroelectric power plants because they regarded them as stable cash cows. As far as they were concerned, the nearby regions regarded them as Signs of progress and solutions to energy problems.
However, with the gradual surplus of electricity in my country in recent years, the power generation of hydropower stations is often destined to be abandoned (commonly known as “abandonment of electricity”)”
Nevertheless, the main reason for decommissioning seems to be the restoration of the original flow of the river. “Hydropower stations have always been one of the important factors restricting the ecology of Sichuan’s rivers,” said Wang Hua, deputy director of the Sichuan Provincial Water Resources Department. We go further:
“The government may be trying to get rid of these plants. This explains the tone of the article. It seems to try to keep investors away from those hydroelectric plants. In light of this, China’s ban on Bitcoin mining may be just part of a larger move. They are serious, Shake there methodically.
What might their ending be? Is China just trying to achieve carbon neutrality and repair the original flow of rivers? Or is there something else playing here? “
However, some things did not add up.exist Another article on the ban, We emphasize that hydropower energy is clean energy.
“Does China make a lifetime mistake of banning Bitcoin mining or do they have any secret plans?
The fact that the electricity for crypto mining in Sichuan comes from clean hydropower means that many people believe that the province will become a safe haven for Bitcoin miners. “
China Prohibition Theory #4: The New China Model
we Explore Bloomberg’s theory Regarding the “less founder-driven, more China-centric” model that China is exploring.
“If China abandons the Silicon Valley model, what will it replace? Insiders say that it will be less driven by founders and more China-centric.
Why does China dwarf its largest industry and participants? The “Chinese model” only depends on the scale? Or do you control your attention? Are they attacking people and companies that have too much power around the world? “
Although this is not very credible, it introduces the notion that China is also cracking down on their biggest technology executives. Maybe it’s not just about Bitcoin?
BTC price chart for 01/02/2022 on Bitrex | Source: BTC/USD on TradingView.com
Chinese ban theory #5: making Bitcoin difficult to use
This does not explain the overall theme of the Chinese ban. However, it does add color to any theory you like. In an event, Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China, said, “We remind people once again that virtual currencies such as Bitcoin are not legal tender and have no actual value support.” And continue to list the People’s Bank of China as a crackdown on encryption. Everything that currency trading does.
inside NewsBTC reports on it, we say:
“Maybe their plan is simpler than we thought. The People’s Bank of China may make it really difficult for ordinary citizens to access Bitcoin. Moreover, China will use propaganda and repetition to control and fear the unknown. One of Bitcoin’s prototype confrontation scenarios . A battle that Bitcoin anticipates sooner or later.”
Chinese Prohibition Theory #6: Prepare for Evergrande’s breach of contract
Did the Chinese government just shut down exports?they know Evergrande situation is inevitable And don’t want people to have a usable Bitcoin lifeboat. In our report, we said:
“All in all: the government sees this from a distance. They know that this crisis will hit this country repeatedly and ban Bitcoin mining to scare people from buying the hardest asset ever. Bitcoin, a real hedge against every economy A tool for body collapse.”
Chinese ban theory #7: FUD gets more bitcoins
according to John Carvalho’s wild and hypothetical theory, China bans Bitcoin-related things every cycle to manipulate prices and obtain more Bitcoins. The country has no incentive to ban the industry. They made too much money through mining, and they controlled the ASIC manufacturer, and the mining machine exaggerated the value of the chip, they also controlled the business. So, Carvalho’s theory is:
“The major ASIC manufacturer, the Chinese company Bitmain, has prepared a new generation of miners. Therefore, the CCP “decided to create demand for the aftermarket and combine it with FUD.” As usual, they sold Bitcoin And went short. Then, China banned Bitcoin mining, and the entire country shut down ASICs. The world believed that the ban was real, just “look at the hash rate.” This was the first time this happened. Then, China Sold a small portion of its ASICs to the United States.”
According to him, Bitcoin mining in China has not stopped, they just haven’t signed the block. Of course, he has no evidence, nor do we. This is just a theory, just like all other theories.
What happened in China? What are the reasons behind China’s 2021 big ban? We are not sure, but we have a lot of doubts. Let us hope that 2022 will provide us with reliable evidence, new insights, or at least a reasonable explanation.
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