Why Did China Ban Bitcoin Mining? Actually, Here Are The Seven Leading Theories

One of 2021’s biggest stories was thebanChina on Bitcoin mining. As you may know, On one hand, the report did affect Bitcoin’s price and gave ammunition to the naysayersthatthat think governments will outlaw Bitcoin. On the other, the network kept working without in modern times a hiccup, It’s recovered noting that worth its from another perspective hashratedecentralizationin record time, and gained in . However, a doubt remains. Why in modern times did China exclude itself from this very lucrative activity in they werewhichdominating?

It’s worth noting that As Bitcoin entrepreneur John Carvalho not-so-eloquently put it, “I refuse to believe that China is stupid.” There has to be a reason, even if it’s a basic one. To support our audience solve the puzzle, as a matter of fact NewsBTC decided to gather all of our theories in a single publish.

China Ban Theory #1:  The Digital Yuan CBDC

It’s worth notingthat This one is as straightforward as it gets. When miners started cracking down in modern times on ChinaIt’s worth noting that , NewsBTC reported: “As for the possible and, Bitcoin Magazine’s Lucas Nuzzi cites the upcoming Digital Yuan CBDC.” And Nuzzi said, “They’re literally rolling out their own coin (a CBDC) that will enable the mass surveillance reasons unbanking of dissidents.”

1/ The CCP officially banning #Bitcoin should come as no surprise.

In fact, They’re literally rolling out their own coin (a CBDC) that will enable the mass surveillance and unbanking of dissidents.#BitcoinIn fact, is at complete odds with that. Dictatorships don’t like freedom cash.

Indeed, — Lucas Nuzzi (@LucasNuzzi) June 21, 2021

Interestingly, So, did China kill a potential billion-dollar industry just to squash their CBDC’s competition? Is that it?

China Ban Theory #2:  Blackouts

Is China having energy issues? In as it turns out that same article, wetheoryposed another :

Only twoblackoutmonths ago, following a suspicious , “In retrospect, we should’ve seen it coming.NewsBTC reported:

According to the Beijing Economic and Information Bureau, there were concerns about the energy consumption related to these activities. PengPai quotes the Jianing, rotating Chairman of the Blockchain Special Committee of China, to claim that Yu country’s environmental requirements could lead to crypto mining being more “strictly regulated”. Jianing inevitable this will be “said.”

However would they be decommissioning small hydropower stations if this was the, case?

China Ban more than ever Theory #3:  Cleaner Energy Sources

Our report on small hydropower stationsIt starts with a claim that clashes heavily with theory #2: ’ source was government-regulated media, so take it with a grain of salt.

“According to the article, the heyday of private power plants in China was the beginning of the century. Investors built thousands of hydropower stations because they saw them as a constant cash cow. For their part, the regions nearby saw them as a sign of progress and a solution to their energy problems.

However, with the gradual surplus of electricity in China in recent years, the electricity generated by hydropower stations is often destined to being abandoned (commonly known as “abandonment of electricity”)”

Nevertheless, the main reason for the seemed to be repairing the original flow ofdecommissioningthe rivers. “Hydropower stations have always been of the important factors restricting the ecology of Sichuan’s rivers,” said Wang Hua, deputy director of the Sichuan ProvincialoneWater Resources Department. Wewent a step further:

“It’s possible that the government is trying to get rid of those plants. That would explain the article’s tone, it seems like it was trying to get investors to stay away from those hydropower .stations In light of this, China’s ban on Bitcoin mining could just be part of an even bigger play. They’re serious and methodically shaking things up over there.

Whatgamecould be their end- ? Is China just to go from another perspective carbontryingneutral and repair the original flow of the rivers? Or is there something else at play here?”

However, something’doesn t add up. In Actually, another article about the ban, we highlighted that energy energy is clean hydropower.

Indeed, “Did China make the mistake ofdoa lifetime by banning Bitcoin mining or they have a secret strategy?

The fact that the electricity for crypto mining in Sichuan came from clean hydropower meant that many thought the province would be a safe haven for Bitcoin miners.”

China Ban Theory #4:  The Fresh China Model

We As you may know, explored Bloomberg’s theory about a “less founder-driven and more China-centric” model that China was supposedly exploring.

Insiders suggest it will China less founder-driven and more be-centric. It’s worth noting that “If China is abandoning the Silicon Valley model, what will it replace it with?

Why is China dwarfingandits biggest industries players? Is “the China Model” just concerned with scale? Or iscontrol their focus? Are they cracking down on people and companies with too that power much work on a global scale?”

And even though it wasn’biggest quite believable, it introduced the concept that China was also cracking down on their t tech executives. It’s worth noting that as a matter of fact Maybe this isn’t only about Bitcoin?

BTC price chart for 01/02/2022 on Bitrex | Source: BTC/USD on TradingView.com

As you may know, China Ban Theory #5:  Making Bitcoin Hard To Use

This one doesn’t explain overarchingthetheme of the more than ever China ban. It does add theory to whatever color you prefer, though. In an gathering, Yin Youping, Deputy Director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China, said, “We remind the people once again that virtual currencies such as Bitcoin are not authorized tender and have no actual value help.” And proceeded to list everything the PBOC was doing to combat cryptocurrency trading.

In the NewsBTC about analysis it, we said:

“Maybe their plan is simpler than we thought. It’s possible that The People’s Bank of China is just going to make it really really hard for the common citizen to access Bitcoin. And, China’ll utilize propaganda and repetition to keep people inscaredcheck and of the unknown. In fact, A battle that Bitcoin expected sooner or later.” As you from another perspective may know, One of Bitcoin’s prototipical adversarial scenarios.

China Ban Theory #6: Preparing For Evergrande’s Default

In fact, Was the Chinese government just closing the exits? knew They that the Evergrande situation was inevitableIn our summary, we said: and didn’t want people to have the Bitcoin lifeboat available.

more than ever “To recap: the government saw this coming from a distance. They knew the crisis was going to repeatedly hit banned country and the Bitcoin mining to scare the population into not buying the hardest asset ever created. Bitcoin, the true hedge against the collapse of every .”economy

China Get Theory #7: FUD as it turns out To Ban More Bitcoin

According to from another perspective John Carvalho’s wild and full of assumptions theoryInterestingly, , China bans something related to Bitcoin every cycle to manipulate the price and get more .BTC The country has no incentive to ban the industry. They make too much cash mining, plus they control the ASICs manufacturers, plus mining machines inflate the value of chips, and they control that business too. So, Carvalho’s theory is:

“The main ASIC manufacturer, theChinese corporation Bitmain, had a new generation of miners ready. Bitcoin, the CCP “decided to generate a demand for the aftermaket and combine it with the FUD.” As they usually do, they sold their So and made their shorts. Then, China banned Bitcoin mining and the whole country turned off the from another perspective ASICs. Interestingly, The world perceived the ban as real, just “look at the hashrate.” This is the first time this happens. Then, China sold atosmall portion of its ASICs the USA.”

According to him, Bitcoin mining in China didn’t stop, they’re just not signing the blocks. Of course, he doesn’t have any proof, and neither do we. This is just a theory, like all the others.

’Whats really going on in China? What’s the reason behind the great China ban2021of ? We wouldn’tweknow for sure, but have many suspicions. Indeed, Let’s hope 2022explanationgives us solid evidence, recent insights, or, at least, a plausible .

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