There has been a ton of reports on China and what seems like a change of heart in regards to blockchain technology.
The Chinese government is now "embracing" blockchain technology and have even gone so far as to declare that any article or message that tries to say blockchain technology is a scam will be banned.
If ever there was a need to read between the lines of the press and notice what ISN’T being said, this is certainly one of those times.
Especially if you’re one of those people who think China will be the one who directly escorts Bitcoin into its next bull run.
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Let’s begin with remembering that for over 5 years, China has slowly but surely banned its citizens from being exposed to several different facets of cryptocurrency, beginning with cryptocurrency exchanges and moving on to the mining sector as well.
It seems like there is a case of amnesia running rampant through the crypto community at the moment in the form of showering praises for the PBoC, crediting them with the recent price increase of Bitcoin and most other cryptocurrencies as well, to the point where people were finally letting themselves hope for the actual return of the much loved “alt season”.
Of course in reality (as is always the case) there are multiple factors that come into play regarding dramatic price movements in this space. This past week for example, the CME Bitcoin futures expired as well, which consistently plays a decent role in price movements.
But let’s get back to the moves that China is making and in the meantime, I want you to consider what these moves mean in light of their past behavior, because let’s not be foolish enough to think that it’s not all at the very least, a bit connected.
China first set the stage by banning its citizens from trading cryptocurrencies and participating in ICOs, quite possibly combined with the censoring of news articles that speak about the positives of blockchain technology and most definitely censoring the positives of Bitcoin. Effectively controlling their exposure to the liberated side of cryptocurrencies and blockchain tech.
And that right there is the detail that I think everyone should be aware of.
The difference between blockchain tech and Bitcoin.
It’s a discrepancy that most governments and big banks like to make, that they can see the value in blockchain technology, but not the value in Bitcoin.
Blockchain technology is a tool with a lot of potential depending on how it is implemented. It can certainly be disruptive if done right. For example, that technology applied to the financial sector and the creation of money holds a ton of disruptive power, lucky for us, that implementation has been going strong for the past ten years and continues to be a lifesaver for those eager to have a plan B, I mean, plan Bitcoin.
And as I’ve pointed out time and again on this channel, those who have thrived for so long based on the control they have are the same who will be on the blunt end of the disruption and we know they aren’t happy about it.
China now approves of blockchain tech, and unsurprisingly, they still do not approve of Bitcoin.
((Which is fine by the way, Bitcoin works quite well with or without the stamp of approval by any government which is exactly what makes it that lifesaver for those who are desperate to regain their autonomy and control over their money.))
The trend is apparent now that everything is going digital and that includes currencies.
Those who are issuing them now, like Libra, like JP Morgan, and other countries even, are doing so on their own terms, with their own limitations and what I believe will only be more of the same centralized control at the expense of whoever uses them.