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Bitcoin Rejection by China May Bring Country’s Economic Rise to a Halt: Bloomberg’s Mike McGlone

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Fri, 07/23/2021 - 11:38
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Yuri Molchan
Bloomberg's leading expert in commodities reckons that by rejecting Bitcoin and other crypto assets, China may put its own economic rise on hold
Bitcoin Rejection by China May Bring Country’s Economic Rise to a Halt: Bloomberg’s Mike McGlone
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Chief commodity strategist of Bloomberg, $100,000 Bitcoin believer Mike McGlone, has taken to Twitter to comment on the recent crypto mining and trading ban imposed by the Chinese government and the rise of USD-backed stablecoins.

He believes that rejecting crypto, and Bitcoin in particular, may not be good for China's further economic rise.

"China's rejection of crypto may suspend its economic rise"

McGlone has tweeted that the Chinese government's rejection of "open source software crypto assets" may bring the country's economic rise to a plateau.

McGlone is also praising the digital form of USD, dollar-based stablecoins USDT, Binance USD and USDC, and flagship cryptocurrency Bitcoin in his tweet. One of the charts he has shared shows that the dollar is leading the digital rise over the Chinese yuan.

Related
Alipay Against Crypto Crime: 380 Criminal Groups Busted For Using Crypto in Money Laundering

China cracks down on crypto miners

In May, following Elon Musk's rejection of Bitcoin payments for Tesla e-cars, Chinese authorities began clamping down on crypto miners in the country, depriving them of access to energy in the provinces that boast the biggest energy production: Anhui, Qinghai, Sichaun, Yunnan and so on.

In some cases, this was spare hydro energy that would be wasted if not used by Bitcoin miners.

Thus, the Chinese government has been forcing mining companies either to close down and quit their business or leave for friendlier jurisdictions, such as Canada, Kazakhstan and the United States.

Bitmain and other major mining companies have already started relocating, as reported previously by U.Today.

Related
Elon Musk’s Statement That Tesla May Accept Bitcoin Again Pushes TSLA Price Up: Former Goldman Sachs CIO

Elon Musk assumes Tesla may resume accepting BTC

After online conference B-Word—in which Elon Musk, Twitter CEO Jack Dorsey and CEO of ARK hedge fund Cathie Wood, participated and discussed Bitcoin and its prospects—Musk revealed that he personally holds Bitcoin, Ethereum and Dogecoin.

He also stated that Tesla and SpaceX hold BTC on their balance sheets, and neither of these companies, nor Musk himself, are going to sell their BTC.

Musk has stated that Tesla may resume accepting Bitcoin payments for e-cars after all since Bitcoin mining has become far greener than when he shut down this option on May 13.

That pushed the Bitcoin price from the $55,000 level down to the $45,000 zone.

However, since then, BTC mining has become more than 56 percent green, according to Bitcoin Mining Council data shared by MicroStrategy CEO Michael Saylor (the head of the council) on his Twitter page.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.