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  • Bitcoin crashes

  • After yet another Chinese crackdown

  • How much power does China have over crypto?

  • Welcome to China Uncensored.

  • I'm Chris Chappell.

  • This episode is sponsored by PC-Doctor Toolbox.

  • Protect your PC from software crashes, hardware failures, and the kind of glitches that make

  • your life miserable.

  • Speaking of crashes, Bitcoin!

  • After hitting a mid-April high of 65,000 dollars, the price of bitcoin tumbled below 30,000

  • dollars.

  • And China is to blame.

  • You see, the Chinese Communist Party doesn't like Bitcoin.

  • For one, the Party can't control it.

  • And for two, the Chinese regime is spending big to create its own digital currency.

  • Which it would control.

  • Ironically though, China is where most of the bitcoin mining happens, particularly here

  • in Sichuan Province.

  • Basically, enormous computer banks are used to verify bitcoin transactions, and you get

  • rewarded with bitcoin.

  • It's an energy intensive process.

  • And thanks to China's massive reliance on coal, China has the energy to fuel it.

  • Until this week, when Chinese authorities ordered 90% of China's Bitcoin mining operations

  • to shut down.

  • Local electric companies in Sichuan were orderedto immediately stop supplying power to

  • crypto mining projects.”

  • Andlocal authorities [were banned] from approving new mining projects.”

  • But that's not all.

  • The Chinese regime isn't just going after Bitcoin miners.

  • They're also going after people who use it.

  • And they're getting major Chinese banks to help.

  • I'll explain more after the break.

  • Welcome back.

  • And just a reminder, if you like China Uncensored, we do accept Bitcoin.

  • Visit chinauncensored.tv/support to find out how you can help us fight YouTube demonetization

  • with Bitcoin.

  • So 90% of China's Bitcoin mining has been shut down.

  • There's actually a big silver lining to that, which I'll get to in a moment.

  • But the Chinese Communist Party is also getting major Chinese state-run banks and so-called

  • private Chinese companies involved in the latest crackdown.

  • The People's Bank of China summoned these groupsand told them to 'strictly implement'

  • recent notices and guidelines from authorities on curbing risks tied to bitcoin and cryptocurrency.”

  • And in China, the main risk tied to Bitcoin is using it.

  • Financial firms were told to identify customers using or trading crypto.

  • And cut off their ability to send or receive money.

  • Five major Chinese banks wanted to show how much they agree with the Party's new crypto

  • directives.

  • So they took the initiative.

  • They said they're going toProhibit the use of their accounts for virtual currency

  • transactions.

  • They pledged to promptly put a stop to such transactions, close bank accounts and report

  • signs of such activities to the authorities.”

  • They also called on members of the public to report virtual currency-related transactions

  • to the banks.”

  • Yes, your neighbors can turn you in for using bitcoin.

  • Modern problems require modern cultural revolutions.

  • And recently, Chinese police arrested over a thousand people for alleged money laundering

  • with crypto.

  • Obviously if the Chinese Communist Party says these people were committing crimes, it must

  • be true.

  • And as I mentioned, so-called private Chinese companies are joining the crackdown too.

  • Like China's version of PayPal, AliPay . That is of course owned by Jack Ma, one of China's

  • richest men.

  • Who disappeared for three months after criticizing Chinese regulators.

  • Don't worry, he wasn't dead.

  • He reappeared.

  • After a major crackdown on his tech empire.

  • And now he's just lying low, focusing on hobbies.

  • His hobbies include reading, painting, and staying out of prison by doing whatever the

  • Communist Party wants.

  • Like cracking down on crypto.

  • Alipay said it will monitor and investigate accounts for using crypto, and block or remove

  • those users.

  • That's huge, since Alipay is used by more than one billion people, and 80 million merchants.

  • Alipay also plans to use algorithms to detect so-called abnormal transactions, flag them,

  • and restrict certain accounts from receiving money.

  • I see no potential for abuse there.

  • Alipay also said merchants using cryptocurrencies will be blacklisted and banished from the

  • platform.

  • Now this is hardly the Chinese Communist Party's first crackdown on crypto.

  • Several years ago [China] imposed bans on domestic cryptocurrency exchanges and digital-currency

  • fundraisings known as initial coin offerings.”

  • And according to Forbes, “The cryptocurrency market has still not recovered from when China

  • announced its intensifying regulatory crackdown on cryptocurrencies in mid-May.”

  • The market's total value, now around $1.4 trillion, is around 56% of what it was

  • just over a month ago.”

  • In other words, it's dropped by nearly half.

  • But as I said, there's a silver lining to all this.

  • As the Global Times says, as a result of this ban, “Chinese miners must form alliances

  • to migrate overseas, to places such as North America and Russia.”

  • In the long run, getting the majority of Bitcoin mining out of China and out from under the

  • thumb of the Chinese Communist Party is good.

  • It means that the Party won't ever be able to manipulate Bitcoin transactions by controlling

  • more than half of the mining power.

  • And that protects everyone who invests in Bitcoin.

  • And this episode is sponsored by PC-Doctor Toolbox.

  • Computer and software crashes, hardware failures, and general computer slowdowns are way too

  • common.

  • And they can come up during the worst timeslike during a business meeting, or when you're

  • traveling away from home, and your trusted IT person isn't around.

  • If you're concerned about the health of your computer and want tools to prevent untimely

  • system issues, you should be using PC-Doctor Toolbox.

  • Stop crashes before they happen.

  • And we have a special 50% off discount just for China Uncensored viewers: Use the link

  • and coupon code below to take advantage of this limited time offer.

  • I'm Chris Chappell.

  • Thanks for watching China Uncensored.

Bitcoin crashes

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B1 US china chinese crypto mining crackdown party

BITCOIN CRASHES! China Has It In for Crypto

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    zijun su posted on 2021/06/27
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