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I’m not connecting the dots here. Care to elaborate?
How does any of that create a run on BTC?
- China isn’t doing as bad as you seem to think.
- China made mining BTC illegal a while back.
- China is likely to have its own crypto creation by the government…
China isn't doing as well as you seem to think
They are about to be hit with a multi-trillion mortgage black hole. In summary, the Chinese govt. sanctioned a bunch of property development companies to build houses to sell to China's slowly growing, middle classes.
In order to fund this they ordered a bunch of banks to lend them as much money as they asked for (seriously), this led to a housing boom on steroids. However people started paying the mortgages before the properties were built and the developers carried on borrowing money to build more houses, which was all fine and dandy when the market was going up.
Because the banks were told to lend them as much as they wanted, the companies were desperate to take advantage of that, so even when the market began to dip, they carried on borrowing and used a fair chunk of the newly borrowed money to pay off the interest of previous loans (can you see where this is going?)
Then they had a situation whereby Chinese investors were seeing new developments going up next to ones they had begun to pay for, often in the same apartment complexes. The problem was, these apartments were like half price of the ones they'd paid for.
It doesn't take a genius to work out that if you have a house for sale and your neighbour has the identical house on sale for half the price you do, that your house will not sell.
This led to a lot of angry investors basically saying "we're not paying these mortgages."
This led to property development companies saying to the banks, "sorry, we can't pay you back."
This led to the (often newly formed) banks saying to customers. "Sorry, no withdrawals, we haven't got any money."
This sparked off some very unChinese countrywide protests, whereby people had lost their savings over night and were extremely upset. At these protests, people often hold up two signs, one with words to the effect of "give us back our money you crooks." and another to the effect of "we love our government (please don't disappear us)".
Add to this that Xing has gone stark raving mad, has declared himself a deity, banned various words which may be used to mock him and is doggedly sticking to his "zero Covid" policy which is crippling the manufacturing and tech sectors because he is quite prepared to shut down a region with 20,000,000 people for the sake of one asymptomatic case of Covid.
There is still more nuance to it, but this is the crux of why I believe that China is about to fall and fall hard.
A cryptocurrency run by the Chinese government, will operate something like a child care facility run by R. Kelly.
Where Bitcoin is mined doesn't really have any effect on price, as long as it is being mined.
But like I said, maybe I'm wrong, this is just my interpretation of events. Do with it what you will
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