If Bitcoin proves to be as important a technology as I think it is, then the CCP’s decision to ban bitcoin mining could prove to be the biggest geopolitical faux pas of the next decade.
and China have been at loggerheads in recent years with flashpoints over controlling companies, tariffs and trade, Xinjiang, the Olympics, coronavirus origins, Hong Kong, spying, Huawei, Taiwan, the South China Sea, TikTok and WeChat, Tibet, and so on.
Some would argue there are benefits to the Chinese approach — like fighting the COVID-19 pandemic — but there are certainly consequences too.
With each passing cycle, the probability that Bitcoin has a role to play in global financial infrastructure increases and smart individuals, institutions and funds are securing their exposure to the network.
At the start of the year, China sat in the kingmaker seat in this industry with approximately 75% of global bitcoin mining resources.
The reasoning for China’s decision is uncertain but what we do know is that it would be very difficult to execute this type of blanket ban in a moderately free country.
The Western world is far too swayed by tax revenue, fear of making mistakes and immediate political pressures to implement a blanket ban on bitcoin mining.
Not only do miners secure the network, they convert energy into a digital monetary network, which has potentially profound implications for the broader energy industry.
I know Ted Cruz is not everyone’s cup of tea but listen to this interview he gave on bitcoin mining.