You’ve heard it, I’ve heard it we have all heard it, China bans Bitcoin. But how the fuck have the banned it over and over and over? Well it’s because they haven’t they just have one hell of a white trash trailer park relationship with crypto.
So what the fuck is up?
Well China is an odd country if you’re from the west, which if you’re reading this english post you probably are. So China has quite a few tricks up its sleeves to keep their economy as strong as it possibly can be and one of those weird things is to limit how much money can leave the country. This is a huge thing for wealthy Chinese, they find loopholes about it CONSTANTLY and it is an extreme game of cat and mouse, currently a Chinese citizen can only take out a constantly declining amount of money out a year. In 2015 someone could take up to $50,000 out of the country a year, in 2017 it became $15,000 and now its $10,000. I personally have heard $5,000 a person a year and its staggered, this becomes a problem QUICKLY for dual citizens and especially those who want to invest in businesses across the border or hell even buy a house.
So whats that have to do with bitcoin or crypto? Well pretty fucking obviously people are just easily using crypto to avoid and maneuver around the strict government rules and regulations which essentially what Bitcoin was invented to do, to free you from strict government rules.
Okay So why the fuck is Bitcoin and crypto not banned in China? Well it’s really fucking easy, Bitcoin is money, they make these rules on keeping the currency in the nation to help the economy and what does banning Bitcoin do? It pushes the technology over to the west where America already has Silicon Valley and this could easily be a Silicon Valley 2.0. We also now have an even bigger part of this, our boy Jihan Wu. Now Jihan Wu is the ceo and head of Bitmain, if you somehow live under a rock and have no fucking clue who Bitmain is then I don’t know why the fuck you are reading this post but they are the leaders in producing miners, this includes the Antminer Series you’ve definitely heard of. This is a big deal because Bitmain is currently worth a colossal fuckton, there isn’t an exact number on this but we have proof from two different points of data, the first being Bitmain made 3 to 4 BILLION USD in operating profits in 2017 and more recently it’s been valuated at $12 billion. This makes it VERY influential ESPECIALLY this early into the crypto boom, this means Bitmain could easily become a top 20 Chinese company and have tons of influence. This is a major fucking deal.
So what can we expect in the future? Well we now know Xi Jinping will be president for life and that means we won’t see too many extreme changes from anything we have seen already. Expect Bitmain to be very much in control of China’s “Banning of bitcoin” and when they need a dump to happen and a pump expect “China to be all in on Bitcoin” There is just too much money and too many loose political official pockets.
It’s a fun ride and don’t expect any brakes anytime soon.