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China Crackdown on Crypto Might Have Surprising Reason: Colin Wu

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Tue, 06/22/2021 - 09:53
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Vladislav Sopov
It has nothing to do with anti-money-laundering practices, claims seasoned insider
China Crackdown on Crypto Might Have Surprising Reason: Colin Wu
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Chinese crypto journalist Colin Wu attributes the ongoing witch-hunt against cryptocurrencies in China to the environmental pivot of its policy. 

No Bitcoin (BTC) in carbon-neutral world

In his latest Twitter post, Mr. Wu shared the opinion of Chinese media outlet Caixin. According to him, this source is the most recognized for local governmental officials.

Caixin speakers opined that the ongoing attack on cryptocurrencies should be attributed to environmental practices of the Chinese authorities. 

The country is on its way to 'carbon-neutral green transformation', so, cryptocurrency PoW mining is no longer welcomed here. Bitcoin (BTC) is widely criticized due to the high energy consumption and a notable carbon footprint.

Even controlling 'Bitcoin pricing power', a powerful monetary instrument of Bitcoin (BTC) tokenomics, doesn't look interesting for Beijing in this context.

Isn't it all about control?

Colin Wu's followers challenged this approach and claimed that obtaining control over citizens' assets may be a more powerful catalyst behind the latest regulatory attacks in the PRC.

As covered by U.Today previously, renowned Bitcoin (BTC) bull Michael Novogratz, CEO and founder of Galaxy Digital crypto assets firm, shared similar views. 

Related
Bitcoin Bull Mike Novogratz on Chinese Crackdown: "Will Take Some Time to Play Out"

Meanwhile, Mr. Wu is sure that should this be true, the government would motivate Bitcoiners (BTC) to pay taxes and electricity bills. 

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)