China Puts On Harsh Sentences For Bitcoin Fundraising
I am a simple man, when I see bitcoin ban I get excited and I click, even better when it comes from developed economies and larger economies. Keeping capital flow out of bitcoin and concentrated in their economies is better for smaller countries and institutions to get ahead, and naturally for the average pleb like myself to build an outsized stack to what people in this market can afford in the future.
China has been hell-bent on beating bitcoin out of its borders, first with a mining ban and which temporarily knocked back hash power and the price.
Bitcoin eventually recovered as miners found new homes and we continue to soldier on as if it never happened. As for China, there are still some secret mining operations in the country but it's nowhere near the large portion of the network that it was 2 years ago.
Getting rid of miners was only part 1 of the plan, the next part is to get it out of the hands of people.
Jail time for Bitcoin fundraisers
As we saw in Canada and now Ukraine, people are able to mobilize funding around financial institutions and governments. Think, if the protests in China in 1989, were not simply students and average workers, but students and workers with global funding flowing in to support their cause, it would really put pressure on governments.
Something China wants to avoid and thanks to a new ruling by their Supreme Court raising funds in Bitcoin can potentially result in lengthy jail sentences for citizens found guilty.
Expanding on previous bans
China is no stranger to banning capital raises in digital assets and back when the ICO bubble was forming they banned crypto fundraising in 2017. Now those rulings have been amended to include fundraising and allowing for prosecution.
The law takes effect on March 1
If found guilty, a single offender can expect
- up to 10 years in prison,
- as well as fines as high as 500,000 yuan ($79,000)
Can't have competition for your CBDC
China has gradually increased its rhetoric and rulings against cryptocurrency as it rolls out its digital Yuan. We already see how they've gotten rid of cash to ensure the Yuan has no escape and no competition, so allowing for bitcoin would provide a pressure release valve for citizens to escape.
If you are to have a successful CBDC you cannot have competition it has to be stamped out.
Bullish for bitcoin
Bitcoin is a monetary network, it means that it's not the amount of users coming in but the amount of value it brings in. As western economies in Europe try to tighten their grip on flows into Bitcoin and China do too, it only means massive capital allocators cannot get exposure.
This helps with the early redistribution of value and keeps the little guy in the pound seat if he or she is willing to stack. Once the exclusion of the bitcoin standard comes back to bite your country as others progress past you, those flood gates will eventually release.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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Dear @chekohler, I didn't know about cryptocurrency, but I could understand a little bit by reading your article.
I've always wondered how cryptocurrencies can affect the world's politics, economy and life.
As you argue, if Chinese students and citizens in 1989 received global funding through cryptocurrencies, their protests may have been successful.
I thought that if cryptocurrencies displace fiat money and dominate the world, individuals could easily get global money and develop the world in a balanced and equitable way.
I don't know how it will affect politics I think we're seeing it now in real time, with El Salvador embracing bitcoin, while Venezuela becomes a crypto state not by choice but necessity and then whats going on Canada and Ukraine, this is the next test for bitcoin so lets see how it fairs
Dear @chekohler , Americans and Western Europeans talk about the advantages and limitless value of cryptocurrencies. However, you are talking about the impact of cryptocurrencies on non-Westerns like us.
So, the claim of a non-Western person like you is a special experience for me.
I felt that you certainly gave a different perspective to the way East Asians like me use cryptocurrencies than Westerners!
I felt that you are definitely giving me a different perspective from Westerners on how to use cryptocurrencies.
I guess you are an Indian living in Cape Town, South Africa!
I agree with you, it's hard to understand how it impacts our nations, as most of the content is western-centric, I myself would love more critical looks at bitcoin and crypto from a developing country view so I can learn more.
I am glad you finding value in my learnings, but I am no expert, just someone trying to figure it out like the rest of us, and sharing my thoughts
Lol No I am not Indian, my heritage is a mix of South African, Philippines, German and Chinese, but you wouldn't be the first to think so, many people when I have travelled think I am their nationality. I've been asked if I am Egyptian, Columbian, Mexican even Pakistani, but I've worked with many Indians who have moved here and I do enjoy a Masala dosa, or chicken korma like everyone
I agree with you! Especially for East Asians like me, it is difficult to understand cryptocurrencies because they are not used to English. So, East Asians understand cryptocurrencies as speculative products simply for making money.
I think we should study how cryptocurrencies will affect people from non-Western countries like us.
So, I look forward to helping you a lot in the future.😄
I had a gut feeling that you have a similar sensibility and intelligence to Asians!
South Africa is one of the most developed countries in Africa because it has the most European orientation in the black African world.
I felt that your point of view as a non-Western person had different charms and values than Americans and Europeans!
With your help, I want to break free from a western-centric view! 😄
Not even the mighty China can stop Bitcoin. I don't know why these nations have chosen to block their own people from the greatest financial opportunity in the history of the world. I'm not surprised, they curtailed the Internet too with the Great Firewall Of China. I feel sorry for people living within these physical and electronic walls, some of whom have never known freedom.
I don't know shit about how Chinese citizens see the world some could be perfectly fine with their system, who knows? Of course, I hold western values too and having more freedom is always a good thing in my book, I don't know if every country will ever fully move over and I think it will always be a scale on how much freedom people have, and people will migrate to where they feel their values resonate the best, if they can afford to that is
It’s a wonder how the powers in China think they can stop things like bitcoin. I guess it’s mostly posturing and trying to make it seem like they are doing things to “stop” and “control” bitcoin otherwise the old guard that’s not technologically aware will get their panties in a bunch. I’m glad to see one of the worst countries in the world is highly offended by bitcoin, it means it’s working well!
I've been reading this book Nietzsche and the Nazis: A Personal View by Stephen Hicks and it's given me a different view on things, Its kind of like we are so used to Western values we can't think another way and in these countries people think this is the way to run a society and many agree with it, im not saying its a better system, just saying that it opened up my mind to not goodies and baddies but just there are world views we can't get our head around.
I think that bitcoin will bring back a cost, if your view is superior bitcoin will flow into it and sustain it, if not it wont and it will die, but under fiat certain false views of the world can continue on and continue to be funded
That’s awesome dude, I’ll have to see if I can find it. I certainly appreciate seeing different world views, I don’t like living in the Fakebook echo chamber.
I feel you man, I feel like I am being psy-opped at every corner, so I am always trying to read something that gives me that wow I never thought of it like that moment
If you're into the whole China vibes, I recommend, Snake Oil: How Xi Jinping Shut Down the World by Michael P. Senger, this one really got me hooked
I agree that PROC sees Bitcoin as competition for it’s Digital Yuan. A competitor it cannot control. I am sad for it’s people as the noose of its totalitarian regime tightens around its neck.
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Once you control the money, you control the highest form of speech, this didn't go well in previous regimes, but they think because they have all this new technology that this time will be different, I am not so confident, but to each their own I suppose
I think Elon Musk said that, money is a form of communication. I need to read up on that idea. As for this:
I expect the bad actors to try to monopolize the technology for their gain. China is creating a real 1984 situation.
I think China is only protecting their global supply chain because many small ventures had established using crypto wallets for payments, which was negatively affecting fiat currency to devalue, and to curb the problem China had to go with harsh measures.
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How private individuals fund certain projects should have nothing to do with capital outflows, how is funding local initiatives capital outflow? This is about them not wanting capital redirected to messaging and ideas that are not CCP approved and to quell any dissonance.
Even if your case was the reality that is still the choice of people in the market acting rationally, who needs protection if the individual themselves is making the decision?
Well, every country has its own policies for monetary well being and to control how funding should come to legit organizations. But, I think China may eventually go for regularization of Crypto when it comes to digital Yuan.
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I summon my energy every single day of my life and pray for Israel and China's leadership to be glassed into the stoneage. If God would do this smiting, I would be grateful beyond measure.
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