Here are my thoughts on China's ban on Bitcoin mining and its crackdown on the whole crypto industry.
The ban and crackdown news seem to have been a coordinated FUD amplified by both traditional and crypto media. Bitcoin is in a healthy correction that started last Wednesday or Thursday, depending on where you are located.
Everything is fine until the weekend dip set in last Friday night. This brought Bitcoin down to 37K. By Sunday, news that China is finally banning Bitcoin (after so many years of attempts) by mandating the closure of all mining farms and state banks ceasing to support transactions involving crypto were all over the news. This brought Bitcoin down to 33K.
China's ban on Bitcoin and crypto is totally align to the goals of its communist party. The party stays in power by keeping its citizenry always at a close check. Bitcoin and crypto give Chinese citizens more than the freedom that the party sees as tolerable. Since it is fully decentralized, thus, causing difficulty on checking its citizens, the party is obligated to quell Bitcoin and crypto. Otherwise, its citizenry in worst case may use it to revolt and topple the party's grip to power.
In the long term, China's mining and crypto ban will be good. Why? One less FUD for Bitcoin, not just a FUD but a big and perennial one. The transfer of miners to United States, Kazakhstan and other Asian countries which offer affordable energy costs and more friendly regulations will also decentralize Bitcoin's hashrate. The question remains however if these countries will remain crypto friendly as governments and leaders are not permanent and new ones may have a different stance.
Bitcoin's current dip as well as that of altcoins is just temporary. China by banning mining and crypto has so much more to lose in the long run. While its political and economic implications may not be seen by China right now, it will surely look back to these actions as a regrettable one a decade or few from now.
It is not Bitcoin but China which has so much more to lose.
