China Cracks Down on Mining, Some to the Left, Some to the Right

Li Xiaolai has mentioned in his book that for the same reason, different people will make completely opposite decisions.

Especially the Chinese mining industry now. When provinces and cities such as Inner Mongolia, Xinjiang and Qinghai introduced corresponding policies to clean up the mine, many people are waiting and watching because Sichuan has not yet come out with a policy, which means there is still hope. After all, the Sichuan mining farm accounted for a relatively large amount of computing power.

In addition, other provinces and cities were cleaned up, but also can move to Sichuan. But when Sichuan also issued a policy to clean up its mining sites, the sound of “bitcoin going to China” started to emerge online.

The “de-Chinaization” of bitcoin became even more vocal after some of the country’s banks and payment institutions were interviewed and issued a ban on services used for virtual currency transactions. Recently, Caixin.com published an article stating that China has decided to move towards a carbon-neutral green transition, never accepting the issuance and speculation of non-digital fiat virtual currencies, and treating the fight for the so-called “Bitcoin global pricing power” as a false proposition, and that the existence of high energy-consuming virtual currency mines is no longer welcome in China. This is another official statement that the government is serious about not competing for the pricing power of bitcoin and cleaning up mining farms.

The last time it was serious was on September 4, 2017 when it cleared out ICOs and shut down all domestic digital currency exchanges in one fell swoop. In the face of the crackdown on mining farms, different people reacted differently to it. Some people dumped bitcoin and thought the market would continue to go down; some said they would not retreat, not go away, and firmly resolve to move forward with the industry …… This should also be the beginning of the sentence, different perceptions, different choices. So recently, what celebrities and famous companies have made a different response?

/ 1 / Those to the left

Zizen, the co-founder of YOYOW, quoted his tweet yesterday that he joined the blockchain industry full time and said again that he chose this industry without leaving a way out. He knows that he is “running into a future that I don’t know what it will be like. But still head iron, and there are signs, has always been an iron simpleton.

This time is the same, do not go, do not retreat. The last time I joined the blockchain industry full time was on September 5, 2017. And on September 4, leaving a name in the history of the Chinese cryptocurrency circle, seven Chinese departments issued a document to clear out ICOs, requiring the domestic digital currency exchanges to shut down, known in history as the September 4 incident.

Originally, he had a job, but he only put in YOYOW project part-time. When the “one-size-fits-all” regulatory policy was introduced on September 4, the market overreacted and panic spread. He thought something had to be done, so he announced he was joining YOYOW full time.

He firmly believes that blockchain technology will eventually change the world, although he doesn’t know what the future looks like. He just felt that the team needed him to step up, and at this point, no one was missing, so here he is. Of course, he already knew enough about the industry by the time he decided to join the blockchain industry.

The content of Zizen’s tweet was in 2013, when he first bought bitcoin, and it’s been eight years since then. He says he has been in a cashless state for so many years, leaving enough money to pay off his credit card every month and buying the rest directly. As you can see, his belief in the industry is not affected by domestic policies.

At the same time, because he likes to promote what he believes in, so he has the title of “King of Milk”. As he said himself, he thought about what he really wanted and then did it.

David Marcus, head of Facebook Financial (F2) and formerly head of Libra’s Diem cryptocurrency project, sees the Chinese government’s crackdown on bitcoin mining as a “major development” for cryptocurrencies. “. He tweeted that more bitcoin mines moving to the US and the West is a bad thing, and that IMO China’s crackdown on mining is a major development for BTC.

Despite a certain bias, he has faith in the blockchain industry that it will get better. ric Edelman, founder of Edelman Financial Engines and the RIA Digital Asset Council, and a financial advisor, recommends adding bitcoin to portfolios despite its volatility. “It’s new and different, it’s the first really new asset class in about 150 years,” he stressed, “and it has a huge investment opportunity.” …… The present moment may be a tough one for the domestic mining industry. It also leaves many miners facing tough choices, but for the strong believers, no time or event will shake their hearts to believe.

/ 2 / Those to the Right

These people are the opposite of those who believe in the industry and Bitcoin ahead of them. Today CNBC Mad Money host Jim Cramer revealed that he has sold off all of his d-value bitcoin. He predicts that the fundamentals going forward are all depressing for bitcoin and thus bearish.

In his assertion that there are no structural reasons for bitcoin’s rise, he made a point of highlighting the recent regulatory crackdown in China.

At the same time, he warned that U.S. regulators could also take action against the company that paid the ransomware attackers to prevent the company from handling crypto assets. This is because of Colonial Pipeline’s $4.4 million bitcoin ransomware attack in May, which led to a fuel shortage in the U.S. Southeast and saw law enforcement agencies step in to recover $2.3 million worth of bitcoin.

He also mentions Tether as the “weak link” holding the cryptocurrency market together and points to the ongoing controversy over the USDT reserve. Of course it should also have something to do with the recent bitcoin price. It peaked at more than $60,000 and is now at more than $30,000, nearly decimated.

However, for this host, it doesn’t matter what reasons there are to back it up, what matters is that there is no faith and you don’t see hope and want to sell is all.

The founder of Scion Asset Management, Michael Burry, who once made a lot of money shorting subprime mortgages and is also the prototype of the movie “The Big Short,” warned investors: “All the hype or speculation is to attract retail investors before the “epic crash,” if digital currencies fall from trillions of dollars in size, or retail holdouts fall from tens of billions of dollars in size, the average market participant will lose on a national scale. History will not change.”

China Cracks Down on Mining, Some to the Left, Some to the Right

Michael Burry Twitter account he has since deleted the Twitter account. With the low price of bitcoin, the overall market for cryptocurrencies is not even high. If it does crash, it will still be higher than its previous high at today’s price. It’s no coincidence that Robert Kiyosaki, author of the financial bestseller “Rich Dad, Poor Dad,” tweeted on June 19 that the biggest crash in history is coming and that he’s waiting for bitcoin to fall back to $24,000.

He didn’t specify why it would fall to $24,000, nor did he mention the logic of his analysis, only this conclusion. He had predicted the next stop would be $50,000 when Bitcoin hit $17,000. And then this came true. He also later predicted that Bitcoin would reach $1.2 million in 5 years.

And of course, he has said that if Bitcoin falls to $27,000, he might buy in again. I wonder if this predicted crash is the buying point he was expecting? …… As long as you want to do something, you can always find the appropriate reason. The point is that you want to, not in the external environment how. The current environment is not optimistic, but is there really no room to maneuver around it?

/ 3 / It’s not about what you want, it’s about what you want

There are news reports of billionaire and CEO of Point 72 Asset Management Steve Cohen saying that he is delving into cryptocurrencies. He emphasizes his complete conversion, “I’m not going to miss this. I already feel like I missed the first part of it.” Point 72 is an asset management firm that is approximately $22.1 billion in size. Its firm has 12 offices worldwide as well as 1,650 employees.

While Steve Cohen says he’s a full convert, he’s not keen on bitcoin. “Forget about Bitcoin,” he says, “I don’t care about Bitcoin, I care more about the technology behind the blockchain and how transformative and innovative it is.”

Then there’s F2Pool co-founder and Stake.fish founder Wang Chun, who tweeted today, “I’ve purchased 1,100 bitcoins in the past few days and will continue to do so in the future.” …… Wang Chun’s tweet about buying bitcoins while on the other side of the fence, China’s Supreme Court and Supreme Prosecutor and Ministry of Public Security issued opinions on criminal cases of telecom network fraud talking about virtual currencies; and Bitcoin miner Bitfarms debuts on the Nasdaq, with shares down 8.6%; and the latest news Bitcoin China sells Singapore trading platform ZG.COM, fully withdraws from cryptocurrency trading business …… At this node, there are still people thinking about coming in and wanting a little more leverage; while some feel hopeless in the industry and ponder a way out; and others are being influenced and are left with no choice. In any case, the industry news and policies, what celebrities and companies do and think, can be referred to, but is not the basis for you to make a choice.

What you have to do is to weigh the pros and cons with your own reality. And before weighing the pros and cons, the most important thing is to be clear about what you want.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/china-cracks-down-on-mining-some-to-the-left-some-to-the-right/
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