It doesn’t take much to make the crypto market shiver in fear and thus cause the market to crash. So, when the world’s largest bitcoin mining country, responsible for 70% of the hash rate, says it plans to crack down on mining and trading of crypto you should expect people to worry and sell.
However, with so much at stake, literally $1.5 trillion, shouldn’t the crypto world avoid jumping to conclusions?
We’ve seen manipulation of the market based on fundamental influences like government regulation and bans, corporate favoritism, and even tweets from billionaires. The results are skyrocketing prices and massive dips, and ultimately an unstable market.
The latest example came after Vice Premier Liu He of China announced a need to go after miner’s and trader’s abilities to use banks and payment gateways to exchange crypto for the yuan. These additional measures aim to lower the use of crypto, especially Bitcoin, as it disrupts the Chinese economy structure based on the yuan and uses a lot of electricity to mine.
What these statements do not tell you is that bitcoin mining can and is becoming more eco-friendly with solar farms and other methods of mining. So, the problem doesn’t lie in the cost of a carbon footprint as there are viable solutions other than removing the mining altogether.
Also, by eliminating the avenues to exchange crypto for fiat, the Chinese government is essentially removing the legitimate means of conducting business. Therefore, it is safe to say that the banking and payment bans have nothing to do with fraud rather the imposition crypto has on the Chinese yuan.
My final point can be made by a tweet from the Hong Kong’s Bitcoin Association:
— Bitcoin Association 香港比特幣協會 (@bitcoinorghk) May 18, 2021
In other words, when the competition gets high prepare for it to be crushed. Once you know this, then maybe, just maybe, the crypto community can avoid letting hard-earned profits crumble and fall. Because it doesn’t benefit the average trader rather revives the governmental monetary system and gives more opportunities for the rich to get richer. Let’s instead create stability for alternative currencies by avoiding intimidation and fear tactics.