thecoinrepublic.com
- China’s anti-cryptocurrency crackdown will almost certainly worsen, possibly leading to an outright prohibition on possessing the tokens
- This year, China has launched a new anti-cryptocurrency campaign
- Bitcoin has dropped to approximately half of its mid-April high of $65,000 as a result of these actions
According to Bobby Lee, one of China’s first Bitcoin millionaires, the country’s crackdown on cryptocurrencies would likely worsen, possibly leading to an outright ban on holding the tokens. Lee understands what it’s like to be on Beijing’s wrong side: Following a crackdown in 2017, he sold BTC China, the country’s first Bitcoin exchange and at one point the second-largest in the world. China has initiated a fresh anti-cryptocurrency campaign this year, targeting miners and imposing restrictions on crypto banking and trading. Bitcoin has dropped to approximately half of its mid-April high of $65,000 as a result of these actions.
The next step, the final straw, would be to outright ban cryptocurrency, Lee said in an interview at his WeWork office in downtown Shanghai, without going into detail about how such a ban would be enforced. It’s a 50-50 chance, in my opinion. Lee recently returned to China following a trip to the United States, where he published a book called The Promise of Bitcoin. Ballet Global Inc., which makes a hardware wallet for storing cryptocurrency, is now his primary focus. Lee remains bullish on Bitcoin, expecting that it would conclude the year at $250,000 and reach $1 million by 2025. He refused to reveal the value of his Bitcoin holdings.
What are your thoughts on China’s latest anti-miner crackdown?
The Chinese government realized that in order to establish financial stability, it didn’t want to see an uncontrolled, volatile financial product being traded, used, and invested by the Chinese people. China didn’t try to distinguish between Bitcoin mining facilities fueled by renewable energy and those fuelled by polluting coal. So, to me, that indicates that it wasn’t about the mining’s cleanliness, but rather a higher-level perspective on the country’s financial soundness. They could do a couple more things, in my opinion. China is aware that several businesses and exchanges continue to operate in the country. As a result, the government may expel them.
The ultimate straw would be the outright prohibition of bitcoin. Although we’ve heard throughout the years that China has outlawed Bitcoin, this is technically incorrect. Bitcoin is still legal to acquire as of July 2021. You are free to purchase it and sell it to friends or strangers. It’s simply that you can’t do it through a platform or company because all of those companies and platforms have shut down. When Bitcoin reaches $500,000 or $1 million, China may decide to outright outlaw it if people are no longer allowed to own it. At that point, there will be a lot of selling pressure on Bitcoin. I’d say the chances are 50/50.
What suggestions would you provide to miners?
They should sell any capital equipment they have because it will depreciate in value over time. I’m aware that a large number of people are exporting these devices. Because they have a lot of room, cheap electricity, and a lot of investors willing to put up their money for this gear, North America has a strong hunger for mining machines.
The Chinese market for Bitcoin has always been significant, but it will become increasingly so in the future. China, like many other Asian countries, has always had a population that is interested in risky investments. And it’s for this reason that Bitcoin has become so popular.
I believe that a few more announcements will be made in the coming months that will effectively halt all exchanges in China. So, once this year is out, trading cryptocurrency will be a thing of the past. In some respects, this is a wonderful thing for crypto, because I’ve always believed that Bitcoin’s success was independent of China. It isn’t dependent on any one country or group of people, just as it isn’t dependent on any one country or group of people.
What will be the next big thing in the crypto business in China?
There are two topics that are quite heated right now. Decentralized finance, or DeFi, began last year, and non-fungible tokens, or NFTs, are now a hot issue. Personally, I believe they are both overhyped. With the bull market approaching, I believe the enthusiasm will grow even more this year. I believe they will be laid to rest next year or the year. We support DeFi and NFTs, therefore I’m glad to be a part of both of those initiatives.