China is kicking out the Bitcoin miners – and that is just the start of it. Crypto has come a long way, and as we have been telling readers for years, it has a lot further to go.
Nothing has changed – and everything has changed.
Bitcoin was ignored. Like most things in a dictatorship, unless it has the ability to challenge the power of the state – it is ignored. That is why so many Bitcoin exchanges have their roots in China.
The Chinese people are smart and ultra motivated. It didn’t take long for them to figure out that Bitcoin and other cryptos were a hot ticket – and once it became possible to trade fiat currency for crypto – well simple local corruption did the rest.
Now, Xi and the CCP are serious about ridding China of crypto infrastructure.
The cover story is green, as if China cared about its environment. The real story is the Digital Yuan, and as smart as the Chinese people are, the CCP is pretty dumb.
Does Power Make People Stupid?
We are told that power corrupts, but to us, it is far easier to show that it makes people dumb. The CCP is moving to popularizing its Digital Yuan – aka the first major Central Bank Digital Currency (CBDC).
From the perspective of a technocrat, a CBDC makes a lot of sense.
The Chinese government probably thinks that it will gain more control by going over to a fully digital currency – and for the next decade – they may well be correct (big maybe).
However, the power that is gained today by using CBDCs will be lost soon enough.
People all over the world will realize that any digital currency can be used, and there is no reason to use one that is created and controlled by a central bank or government that is both power hungry and obsessed with terrible ideas.
Probably a Move for the Better
Concentrating a large amount of Bitcoin’s network in China wasn’t a great idea to begin with. Free market principles being what they are – there isn’t much we could have done to stop it.
China has loads of cheap energy, and we should allow anyone that wants into a PoW mining system to participate.
Now – that people are starting to wake up to PoS and all the amazing things that make it a far more sustainable system, most of this noise will die down over the next few years.
Bitcoin – and PoW was amazing – but things are changing.
The simple fact is that loads of people are interested in cryptos, and the back end of the operation isn’t really that important.
People want money that is easy to use, and PoS systems create a door for platforms that can compete with the incoming wave of CBDCs.
This is About Power – and Nothing Else
The reason why Bitcoin used electrical energy to create a gateway for the creation and maintenance of the network is simple – resources are scarce.
Now that many, many people understand how flawed the fiat currency system is – there is no need to back a token with the depletion of energy resources.
Cheap power could help the poor – and probably other needy causes as well.
The writer of this piece has done well by cryptos, and they understand that this isn’t just about money. We need better resource allocation – and the throngs of global poor are good evidence of that.
The global elite is working to co-opt the idea of digital currency, and it is happening now. The good news is that we don’t need to use any sort of violence to resist them.
We continue to discredit fiat currency for the trash it is – and if they want to make it 100% digital trash – all the better (we all have a delete key these days).
In the Xinjiang Uyghur Autonomous Region we may not have the same luck.
The CCP is doing things that are beyond anything that can be accepted morally in Xinjiang – and the last time this happened – a major war broke out. For the moment the Uyghurs are at the mercy of a violent, heartless dictatorship.
For the moment.
Perhaps it is best that crypto infrastructure is moving out of the Middle Kingdom.