Bad Timing or What?
Originally, I thought Elon Mush was to blame for the colossal dip that we experienced last week. However, there were other powers involved that I only recently found out. One of the main culprits is China. It seems that they started to crack down on Bitcoin mining operations. Seeing how China mines 3/4 of the Bitcoins in the world, that is a significant amount. The crackdown is only limited to those not using hydroelectric power for mining. It is my understanding that the bulk of the mining operations are using coal.
This brings up a good point in a PublishOx article that I read a while back- I can't remember who it was, so I can't give credit. The article was about China weaponizing Bitcoin. Well, we can see that it can be weaponized, but for what purpose?
I was thinking about this. It would be to China's advantage to get people interested in Bitcoin and cryptocurrencies and then pull the rug out from under them. As the crypto market tumbles, China then comes in with their CBDC (Central Bank Digital Currency), and like Superman swooping to the rescue. China gains a foothold in the crypto market as a strong and reliable coin.
However, is there more to it than that? China wants to be the world superpower and to do this, it needs to deal a solid blow to the USD. Currently, the only advantage that the USD has over the RMB is that countries can buy oil, hence the oil dollar. If it weren't for the oil dollar, enforced by OPEC, there would be no need for other countries to buy US bonds. With that, there is no need to buy the US debt, the US can't keep printing money like there's no tomorrow, and the collapse of the US economy occurs. The only counter move that the US has would be war if it would go that far.
What do you think? Is this the speculation of a madman or is there a logic to this? The US is far behind China with the development and implementation of a CBDC. Is Bitcoin a weapon? Tune into tomorrow: same Bat-time, same Bat-channel.
Here's my last article in case your curious.