China's Ban on Bitcoin, & Crypto, is a big win for the rest of us.

Discussion in 'General Discussion' started by CyberKracken, Sep 24, 2017.

  1. CyberKracken

    CyberKracken New Member

    i not sure how others view the outlawing of Bitcoin in China, but, I've been closely involved in crypto currencies for 2 years now, after learning what I've learned about the various ways that Bitcoin was being used in China, and mined, this in my eyes will only serve to help the volatility of its price, and it will become easier to mine. I only wish the various types of Bitcoin offshoots wouldn't have came out till after this happened.
    Why will it make mining cheaper? Well, I read probably 7 different stories that examined the mining of Bitcoin in China, most of them ended up focusing on why the Bitcoin mining companies dominated the world from one country.
    A.) The cheapest electricity prices per kilowatt. Hopefully this ended, and now not one country has the entire Bitcoin mining market cornered, I'm sure the government allowed, and probably encouraged that to happen. That discouraged 5/6 of the worlds miners from minig Bitcoin because the hashrate had become so difficult for everyone but China miners. They were paying 1/5 what we paid to mine 1 Bitcoin. That's huge, it hurt mining worldwide. Maybe some of the interest will return for many more to mine Bitcoin since it's much more fair to do so.
    B.) Bitcoins main use in China was for all the wrong reasons that make a crypto grow in value.
    A.) Billionaires were hoarding Bitcoin, exchanging it for their entire fortune, then it was sent to another free country where the billionaire would flee to with their billions of dollars in Bitcoin, once they got to the country they fled to, they exchange all the Bitcoin in at once for a different fiat currency. The unpaid taxes, on those billions of dollars has a huge effect on the Chinese economy which is magnified 5 fold in its negative effects on the increased prices we have to now pay covering those taxes.
    The other main use was Chinese business people using it to cheat on their taxes, under other competing businesses that make the same product, if one company is suddenly free from paying 70% taxes to the socialist government on their bottom line all the other companies just stop making a product they can't make any profit on. Leaving one company who then can unfairly inflate the price on all of us, till he is caught, or he stops making those items because he made his money, now he is retiring, he sees no profit in making anything else.
    In turn any company wanting to start making those products again, has to now pay the extremely costly price of retooling their whole factory to the latest version of that item, which that cost is passed on to us.
    If the main uses were to hide money, cheat on taxes, smuggle families, and fortunes out of a socialist country, none of those uses helps Bitcoin in any long term manner. I say that's the best news Bitcoin has heard in a long time that no one realized the news for what it is.

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