The De-Chinafication of Bitcoin

<p><span style="font-weight: 400;">On this episode of “The Breakdown,” NLW takes a look at the most recent crypto news before taking a deeper dive into the latest step in the de-Chinafication of bitcoin.</span></p> <p> </p> <ul> <li aria-level="1"><strong><span style= "font-weight: 400;">MicroStrategy going “all-in” on bitcoin</span></strong></li> </ul> <p> </p> <ul> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Michael Burry’s warnings on Twitter of the “Mother of All Crashes”</span></li> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">The “dot plot shock” and post-FOMC meeting confusion</span></li> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Accelerating China mining ban</span></li> </ul> <p><span style="font-weight: 400;">While in this in-between state, post-COVID and pre-monetary policy tapering, institutional investors find themselves on diverging and opposing paths. Michael Saylor’s MicroStrategy has gone “all in,” while at the same time investor Michael Burry took to Twitter with warnings of an upcoming “Mother of All Crashes.” Confusion following the Federal Reserve’s FOMC meeting only adds to the contention between investors with contrasting visions for the near future of crypto.</span></p> <p><span style="font-weight: 400;">The Central Bank of China has convened a meeting with the major banks to reiterate and tighten previous policies on the prevention of virtual currency transactions in bank accounts. Is this restriction on crypto transactions yet another indication that China is taking a more aggressive stance against bitcoin?</span></p> <p><span style="font-weight: 400;">More to this point, Sichuan became the most recent province to crack down on crypto mining. Sichuan, primarily mining with hydropower, seems to diminish previous ban reasoning citing environmental concerns. How far will China go to remove itself from bitcoin, and what does that mean for its citizens and the crypto space as a whole?</span><