China’s Crypto FUD Is Over, What’s Next For Bitcoin?

Bitcoin has plenty of detractors. When they can’t find a flaw in the system, they make up stories to stir up Fear, Uncertainty, and Doubt.

Years ago, the narrative was “the currency of criminals”. When that didn’t hold water, due to the fact that Bitcoin is traceable unlike cash, they had to make up more stories to prove them right.

For months, we’ve been listening to self-proclaimed experts accusing BTC of being too centralized in China and also for being a “dirty” currency.

It is true that 80% of mining was done in China until recently and also it’s true that China uses coal to generate some of its electricity. What they forget to tell us is that China is also the biggest renewable energy producer on the planet and growing at a fast rate.

Another FUD related to China is the mining ban. This is partially true but it will help Bitcoin in the long run.

So, these are the 3 FUDs no-coiners fabricate:

• Too centralized in China
• Too much carbon footprint in China
• China’s Bitcoin ban

It doesn’t take a genius to see that the last FUD cancels out the other two. If it’s going to be banned in China then the centralization and the pollution arguments become irrelevant, right?

Electricity has infinite uses, some are necessary and some are optional. For example, one industry that will increase demand over the next few years is electric vehicles, and this is actually good for the environment so no one is complaining. Well, actually oil lobbies are spreading FUD about this as well. How convenient.

However, it seems ironic that Tesla stopped payments in Bitcoin while still selling cars in China. Surely these cars will be charged, at least partially, with coal electricity. If they think China’s energy is so dirty why not stop exporting cars altogether?

It’s all hypocrisy. Elon Musk is lobbying Biden to become the green warrior of planet earth and in order to score points, he had to show this empty gesture. He had not sold his Bitcoins. It was all a calculated move.

Besides, China’s energy policy is better than we give them credit for. In solar PV, China is both the world’s leading supplier and consumer and it’s also the biggest producer of hydroelectricity. They are taking steps in the right direction and steadily reducing coal consumption.

The point here is not whether Bitcoin uses electricity but where this energy is coming from. Since miners need cheap energy they look for places all over the world where electricity is competitive. Luckily, solar is by far the cheapest form of energy so this is a marriage made in heaven.

75% of the mining operation worldwide is run on renewables. Besides, Bitcoin is promoting green energy in places like Texas, Australia, and Sweden where new solar and wind farms are built with the only purpose of mining. This is a virtuous circle that could end up speeding up the switch to a greener world.

BTC mining operations have been concentrated in China for the last few years. This, however, according to some purists, goes against Nakamoto’s idea of decentralization.

But the reason miners are in China is just price and political climate. When one of those two aspects becomes unfavorable, they search for greener pastures.

The government’s attempt to crack down on crypto will make miners migrate to other countries, in fact, it’s already happening.

Iceland, Kazakhstan, the US, and Russia are some of the alternatives where miners are already migrating. This is what makes Bitcoin truly flexible and decentralized, it can adjust and pivot when the situation so requires.

Another example. Binance, the biggest crypto exchange, started in China. When they saw the political environment wasn’t favorable, they moved to Singapore overnight and carried on with their work. The same thing is now happening with miners.

This shows how antifragile Bitcoin is, the more challenges it faces, the stronger it becomes.

The exodus from China has started already. Hashcow and Btc.Top, two of the biggest mining operators, have already started their migration to North America and other locations.

This is great news for Bitcoin and bad news for China, they are losing a lot of revenue. But their centralized government doesn’t like the idea of a currency that can’t be controlled.

This also serves as a warning to all those countries that want to over-regulate the space. If they aspire to be relevant in the 21st century, they need to provide a reasonable environment for business and technology.

What was unbelievable was to see these think tanks criticizing Bitcoin’s energy expenditure while ignoring the dirtiest, bloodiest currency of all time: the US dollar.

The dollar became the world’s reserve currency in the 50s and then in the 70s became the official currency to trade oil.

Not only printing, transporting and securing dollars is very polluting, also the whole infrastructure around the greenback has a huge carbon footprint. The banking system, the payment rails, the financial industry, they all consume far more energy than Bitcoin.

But that’s not all. The reason the dollar was accepted as the official currency for oil by OPEC was political and not economical. Here’s one conspiracy: The Iraq war started when Saddam Hussein decided to sell oil to Europe in Euros. Another conspiracy: Venezuela and Iran are two of the few countries that sell oil in alternative currencies. Both are facing embargoes.

And another one: Saudi Arabia and the US have been allies since WWII despite SA’s controversial policies and human rights violations. This alliance has helped the US maintain the dollar hegemony in the oil industry while SA got military protection and weapons from the US army (the biggest polluter in the world)

The dollar is not only the dirtiest currency but also the bloodiest. Apparently the FUDders don’t see this as a problem.

We live in a world of narratives. Everyone can pick a story and choose to believe it. We have flat-earthers, conspiracy theorists, and Bitcoin FUDders.

Some are naive and misinformed but most are ill-intentioned. They want to destroy the technology before it becomes too powerful but, for the most part, it’s already too late.

No one believes their narratives anymore. Crony capitalism is trying its best to survive this new asset class but the FUD they use lacks credibility and we can see through it.

Of course, banks will tell you Bitcoin is bad. Taxi drivers also say Uber is bad. But despite their desperate attempts to stop progress, the snowball keeps rolling and absorbing everything on its path. Never ask a barber if you need a haircut.

Now that China, electricity, and criminal activity FUDs have been proved wrong they will try a few more conspiracy theories. But whatever they do, they will fail.

Bitcoin is the most important invention in monetary history only comparable to the first form of currency — the Mesopotamian shekel. It’s going to take over the world and it’s going to make our lives easier. You can either embrace it or stay behind. But being on the wrong side of history has never been a good policy. Ask Blockbuster, Kodak, and Nokia.

Bankers, your time is up. Unless you join the revolution, instead of fighting it, I don’t see any future for you or even for Fiat currencies. We’ve seen many changes in our lifetimes but this is going to be one of the biggest ever.

Get ready for it or get out of the way, the clock is ticking.

You can’t fight inflation with FUD.

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Source: https://medium.com/coinmonks/chinas-crypto-fud-is-over-what-s-next-for-bitcoin-2b34393907ad?source=rss——-8—————–cryptocurrency