Bitcoin ‘n’ Blockchain (007): Your Cryptocurrency is Worthless if China Wishes!

Facts

ACT ONE

1. Bitcoin is right now the most valuable so-called cryptocurrency by market capitalization. (1.)

2. Bitcoin is based on the Proof of Work (PoW) consensus mechanism. The essential part of the transactions depends on the miners and their work.

3. 75-80% of the miners, mines and especially the ASIC mining farms are physically located in China. (2.)

4. Mining causes a huge (negative) impact on the climate and simultaneously an image problem.

ACT TWO

5. China has started cracking down on the mining farms. (3. 4.)

6. China has his own agenda: the rise of the (Chinese) central bank digital currency (CBDC) aka the digital RMB aka the digital yuan. This true digital (fiat) curreny can become the dream of all governments; a perfect sovereign money. (5.)

7. The next step is unfolding at the very moment: popular accounts in China relating to so-called cryptocurrencies have been closed down due to ’violation of laws and rules’. (6.)

Prediction

ACT THREE or the CLIMAX

In my opinion, the consecutive steps of China will end in an existence-threatening scenario for Bitcoin. Avalanche starts with one pebble. And right now we can see a lot of cracks forming a warning on the wall.

Sources:

(1.) https://www.techradar.com/news/best-cryptocurrencies-in-2021-bitcoin-ether-and-more

(2.) https://www.theguardian.com/technology/2021/apr/07/china-bitcoin-mining-climate-targets-nature-study

(3.) https://www.wsj.com/articles/china-reconsiders-its-central-role-in-bitcoin-mining-11622865618

(4.) https://time.com/6051991/why-china-is-cracking-down-on-bitcoin-mining-and-what-it-could-mean-for-other-countries/

(5.) https://asia.nikkei.com/Spotlight/Cryptocurrencies/China-s-bid-for-digital-yuan-sphere-raises-red-flags-at-G-7

(6.) https://www.theguardian.com/world/2021/jun/07/china-blocks-cryptocurrency-weibo-accounts-in-judgment-day-for-bitcoin