The relationship of government interference on the financial market in general has always been evident in most countries. This is necessary in countries that have indexed currencies, in countries with centralized state control or in countries that have a heterodox view of governance.
When you have a communist, privately-held country - except for the special economic zones -, which controls the financial flow and is a binary pair with the financial market in order to impose the state's will on free regulation, you don't know tomorrow within international regulation.
After China's entry into the WTO, member countries began to recognize regulated trade with the country. In this way, too, China is expected to comply with a series of agreements of respect for labor, production, the environment and equal competition with other WTO countries.
As cryptocurrencies are in a gray zone, both commercially and financially, many countries use loopholes to force change.
It's not illegal to shut down Chinese mines in the name of the environment - when it's sincerely for the environment, it really makes sense. But that's not the case here.
The Chinese purge of cryptomines has government interests. China participates with over 50% of the bitcoin ecosystem in the world today! Both in the cryptomining layer and in the lightning layer!
Rumors, of no avail, from more diverse sources, comparing this purge to chaos, a drop or rapid rise of bitcoin do not take into account several algorithmic issues of bitcoin mining.
When bitcoin was developed, a mining control algorithm that fits mine supply was envisioned, among many measures. This algorithm is also necessary - and that is why bitcoin is so fascinating compared to other cryptocurrencies - due to the limit on the emission of bitcoins.
Many heralds of the apocalypse decree the end of bitcoin. Many decree overvaluation for next week, many say there will be a shortage of bitcoin-dependent cryptocurrencies, causing a disruption of the cryptocurrency system similar to the 1929 stock market crack. Some say the bubble burst and now no one else will win!
In fact, many of these either don't know, or ignore one fact: the control algorithm lowers the mining difficulty proportionally to the mine decrease. Translation: if 50% of the mines fall, it's 50% easier to mine the rest, keeping - in a simple way - the same proportion of coins and the same flow!
The second act of this algorithm, explained in a simplistic way here, concerns the speed of ascent after the reestablishment of the mines, that is, it's no use running out and lifting 50% of the mines in another country for tomorrow! The ascent algorithm slows down peak gains of mine as a result of decreasing the difficulty of mieration.
This avoids currency inflation, direct speculative attacks or, more shallowly, spikes in earnings that would destabilize the average price of bitcoin due to mining time, the difficulty of mines and the launch of a larger offer. Otherwise, there would be an inrush chain that would raise the value of the coin to almost 400% at first and then make the same 400% fall by offsetting the difficulty of mining and issuing limit. If that happened, the currency would lose not only absolute value, but also business volume, credibility and medium and long term deposits, changing the entire regulatory capacity for remuneration of stakes.
In addition, the lightning network also regulates the flow of currencies and absolute availability of currencies in its nodes. Even if there were the peaks, the lightning layer would hold the tips lightly compensating the volume of the nodes. The lightning network forms part of the Bitcoin ecosystem, acting, simplistically speaking, in its nodes, as "accumulation and distribution agencies" of bitcoin.
There is much more, the simplification is necessary for that more modest investor to understand: the prophecies of the apocalypse will not happen.
These prophecies happen to convince you to release bitcoin, exchange for weaker coins, or even sell them.
Market analysts have already understood that the flow will reverse......and whoever has bitcoins will recoup their losses.
The moment is of calm.
Now is the time to get informed and know about it!
The time is also to laugh at the medium and long-term damage that China will take, as an indirect financial flow of nearly 1 trillion dollars will be transferred from China to the countries where the cryptomines dock: North America and Kazakhstan, pointed out on the tracking sites as being the new address of the miners!
Anyway, there is no way to lose, winning...right? And there is no way to win by losing?
Not really. As Taoism teaches, in winning actions, something is lost and in losing actions there is always something to gain. The yin-yang!
So relax, the market goes up and the market goes down!
Whoever stands firm and resilient in the fall has fortune and goodness at the top!
Know your team yourself and you will prosper!
