China Hates Bitcoin? The western world woke up to breaking news that China has outlawed all cryptocurrency transactions, along with officially making bitcoin mining illegal within the country. The hysteria of one of the world’s largest, and most populous nations, banning these technologies should drive the price significantly lower, right?
Wrong! Bitcoin is only down about 5% over the last 24 hours and other cryptocurrencies are down in the high single digits. This is because China has banned bitcoin and crypto assets so many times in the past that I have literally lost count. Our friend @JohnStCapital on Twitter put together a great graphic to highlight how ridiculous this has become:
This is most likely why the market isn’t responding with more sensitivity to these types of negative announcements. China isn’t necessarily issuing a new ban, but rather reinforcing their existing rules to make sure that everyone knows they are serious.
Now it goes without saying, but there is something laughable about an authoritarian government run by a dictator trying to ban a technology that is censorship-resistant. This new technology ushers in freedom and sovereignty for citizens around the world. The only people who attempt to ban this technology are the governments or organizations that believe their central planning is superior to the free market.
Additionally, the reason that China has to continue to reiterate the bitcoin ban is because they can’t actually shut it down, nor can they stop people from accessing the network.
By Dylan LeClair
This is the beauty of a decentralized system. No matter how badly a government wants to stop their people from using it, they can’t ultimately shut the network down.
Remember, some governments tried to ban the last open network – the internet – and it did not turn out well for them. A country like North Korea is a great example. The people of that country were completely left behind without access to information, communication, or the freedom of technology.
China is making a similar mistake here. They are essentially signaling that they are going to enter the 21st century geo-political battlefield without any weapons. It would be similar to China declaring war on a country but promising not to bring bombs, bullets, or soldiers.
The digital economy is going to be larger than the physical economy. Things like bitcoin, the metaverse, and decentralized technologies are inevitable at this point. Any country that chooses to sit this trend out and not participate are merely putting themselves in an inferior position.
The United States should capitalize on this mistake by China. Rather than continuing to fight this technology, we should embrace it. The US should do everything in our power to help entrepreneurs and builders create innovation, jobs, and economic prosperity for our citizens. Don’t make the same mistake as China. Instead, let’s make sure that no one in the world benefits more than the US from these technologies.
History will be unkind to those who sit this one out. The dominant nation of the future will be the country that decides to be the leader in artificial intelligence, bitcoin, and decentralized technologies. That is the opportunity ahead.
By Jeremy Allaire
It would seem like a negative thing to have China ban bitcoin and cryptocurrencies, but the market barely cares after the 100th time. Additionally, it should come as no surprise to anyone that the freedom technology is frowned upon by a nation that has bet their future on an authoritarian dictator who oversees a centrally planned economy.
The United States was built for this opportunity. Bitcoin embodies the American ethos and values.
Credit: Jeremy Allaire | Dylan LeClair | GlobalCrypto.Exchange
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