MADE IN CANVA
The clampdown of Bitcoin in China has certainly caused a lot of harm in the short term as it is or was one of the biggest mining hubs in the world. Although supporters of the currency have held strong, the same can’t be said for many investors who are afraid of the sudden dip.
How much has the crackdown in China scaled in the last few weeks?
I think this tweet from CNBC reporter Eunice Yoon sums it up pretty well.
If you are an investor in Bitcoin, then looking at red graphs has become a habit at this point. Although this time, you can’t blame Elon Musk as this is even out of his control as China purges Bitcoin miners from every part of its country. However, it is still legal to own Bitcoin, which is even more confusing. China aims to maintain its authority over the economy, and Bitcoin certainly possesses a threat to that process. The autonomy that cryptocurrencies can offer with the help of the blockchain to most people is a menace to China. This also explains why they launched their own digital asset, the “yuan.”
Beijing has been the latest victim of this successful crackdown on Bitcoin miners who have resorted to using illegal methods to make ends meet after all mining is also a full-time job for many people. This has forced miners to hunt for places where they can continue to operate their mining activities. This will definitely take a lot of time which is great for people looking to buy as the prices will most likely continue to drop till the mining resumes.
Advocates of Bitcoin have resorted to buying more and “hodling” their tokens and are also asking others to do the same. They are also not too bothered by the migration of miners to the US as it eliminates China’s influence on the mining industry, which we have learned recently plays an important role.
This has certainly not convinced people like Jim Cramer to hold on to his remaining Bitcoin. Jim is a television personality and the host of Mad Money on CNBC. As someone who has profited from cryptocurrency, it is quite odd to sell most of your Bitcoin tokens. He also has doubts about the ability of the US to tackle attacks from hackers, especially the ones using ransomware which companies have seemingly not been able to prevent.
From fnlondon.com
The Bank of England’s faith in CBDCs has increased!
This crash in cryptocurrencies has also served as a way for the Bank of England to endorse the use case for CBDCs(Central Bank Digital Currency). It is doubling down on blockchain technology rather than cryptocurrencies as an investment. The fintech director of the esteemed institution also raises concerns over the Bitcoin energy issue and offers CBDC as a more energy-efficient solution to the economy. One of the main concerns of the Bank is the rise of privately backed stablecoins which will take the authority from centralized financial institutions. In addition to the volatility of the main cryptocurrencies, which compromises the capital of common people. This will also serve unbanked people and prevent charging unnecessary fees, which contributes towards financial inclusion.
PUBLISHED BY
DWAYNE D’CUNHA, WRITER ON MEDIUM.
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China isn’t the only one to back out of the Crypto Race! was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.