The real reason why China banned Bitcoin.

[clippers]

I am a Chinese who was exposed to Bitcoin earlier. I hope to analyze the reasons for China’s Bitcoin-related policies to eliminate FUD against China.

Recently, FUD about China is often discussed in forums. China has successively issued a number of policies to prohibit the use of Bitcoin in China, including banning mining and banning bank card transactions in Bitcoin. Many people think that the reason why China is doing this is the decentralization of Bitcoin that is difficult to regulate, but this is only a small reason.

The biggest reason for China's ban on Bitcoin is carbon neutrality. China’s carbon strategy roadmap is to achieve carbon peaks before 2030, achieve carbon neutrality before 2060, and even initially achieve carbon neutrality by 2030. According to the Bitcoin Mining Council report on July 1, 2021, 56% of the energy consumed by Bitcoin mining is renewable energy. But in the past in China, although the specific proportion was not announced, the proportion of renewable energy such as hydroelectric power generation must be far smaller than this figure. This is not conducive to China's goal of achieving carbon neutrality. In order to achieve this goal, all industries need to make way for it.

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. Unlike the United States or Australia, many Chinese who invest in cryptocurrency don’t know what decentralization is, just blindly follow the trend to buy some unknown coins. Chinese investors lack the most basic understanding of the cryptocurrency industry, most people end up in bankruptcy. Only by restricting mining and restricting bank card transactions can China prevent these ordinary people who have been deceived by become parvenu from joining cryptocurrencies. The reason for the Chinese government to create FUD is not to suppress the price of Bitcoin, but to prevent ignorant people from losing money in the cryptocurrency field.

Finally, China's current development focus is still in the manufacturing or infrastructure fields. In China, finance or economy is still a very abstract word for most people. China's overall strength in the financial field lags far behind the developed world. Therefore, the current strategy of the Chinese government is to stabilize the economic foundation first, and after improving the people's knowledge and living standards, it will begin to develop at the financial level. Before that, it is necessary to ensure that China's overall capital flows to the real economy rather than various financial field.

There are some misunderstandings about China on this forum. I do not comment on the policies of any sovereign country, but in ten years, we may see a China that actively embraces Bitcoin. Although China may still issue policies that have a negative impact on Bitcoin now.

[ZOOOOM]

China believes that Bitcoin, as a virtual asset, has regulatory risks. It also has the characteristics of anonymous circulation and centralization, which makes it difficult for the supervisory authority to play a supervisory role, and it is easy for criminals to use Bitcoin to launder money. And Bitcoin is not issued by a Chinese government agency, and it is not a real currency. It is calculated by network nodes, so Bitcoin cannot replace traditional currencies. The management also made it clear that Bitcoin is not a currency in the true sense of the word, denying Bitcoin's currency status. Recently, Bitcoin has been shut down to prevent a series of unpredictable financial risks. This is what everyone can see. As for whether the Chinese government has privately levied coins, we don't know, perhaps through various news, suppressing the price of Bitcoin, so as to get more low-priced bargaining chips. It is also possible to face the open and transparent technical code of blockchain technology and Bitcoin. Innovate to issue China's own digital currency to resist the position of the dollar's leader.

[Lorence.xD]

Aren't China trying to eliminate competition for their Digital Yuan, that's why they crack down on mining in the country because they want to make sure that Digital Yuan will do good? I don't get how they don't say that they want to do it because they want to reduce carbon contribution, most articles don't even mention it.

[davis196]

It's always better to get information about China from a Chinese.
I don't trust the crypto news websites,that are spreading FUD,rumors and gossips about China and the cryptocurrency miners located there.

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. Unlike the United States or Australia, many Chinese who invest in cryptocurrency don’t know what decentralization is, just blindly follow the trend to buy some unknown coins. Chinese investors lack the most basic understanding of the cryptocurrency industry, most people end up in bankruptcy. Only by restricting mining and restricting bank card transactions can China prevent these ordinary people who have been deceived by become parvenu from joining cryptocurrencies.

So the Chinese government wants to ban Bitcoin,because many Chinese are buying shitcoins and losing money?
That doesn't make any sense,why don't they just ban shitcoins and leave Bitcoin and ethereum.

I get the idea of banning crypto mining because of carbon neutrality,but there are many industries in China that are producing way more CO2,but the government won't ban them,because it will cause unemployment.

[Karish2return]

The legitimate cause is the wild fee gyrations of cryptocurrencies, which undermine the security of markets and monetary activities. ... Crude oil had an sizeable gyration for the duration of the pandemic, with futures costs turning terrible for may additionally 2020. but, no government came out looking for to prohibit futures oil contracts.

[cryptomaniac_xxx]

How about 'capital fight'? There is a reported $50 billion going out of China through crypto which is against the Chinese rule. I think this is only one reason why they suddenly put a stop specially on bitcoin because they don't want their people taking out their money out of the country.

And as the country suffers from trade wars, they wanted all their money go inside their country to help fuel the economy. But if bitcoin is deemed to be a threat, then obviously, the Chinese government has to do something about it right now.

[DatKing]

So you say that Chinese government really cares about its people and doesn't want them to make huge mistakes while investing into some cryptocurrencies. But still, it should be left to the people's choice. Because we see many countries letting their people trade cryptocurrencies.

[YOSHIE]

I read what you said, I don't blame anyone in this case China vs Bitcoin, I know very well the Chinese brain, their actions in trading excellence, Bitcoin is their next target.

So, back to your topic and your story, I turn to ask you.
• where did you get all the stories from.
• what you are telling has sources to read.
• and one more thing, are you one of a group of governments that are currently viral.

As far as i know china is cunning, they won't reveal anything secret, before they make big profits.

[Pmalek]

If China cared about the environment and wasn't interested in eliminating the competition as a preparation for the digital yuan, why not kill off every industry that doesn't use renewable energy? If too much fossil fuels are used in the mining operations in China, why not give the miners a deadline of 1/2/5/10 years to switch to better sources of electricity instead of preventing them from conducting their businesses within a few days or weeks?

There are uneducated people all over the world who invest in bitcoin among other things. Your statement that they are trying to protect its citizens is simply wrong. Gambling is if I remember correctly banned in China, but you are allowed to play lottery in locations the state deems as good (the ones run by the state). How do you comment on that? Chinese citizens are protected from losing money in private casinos and sportsbooks, but they are free to lose it in establishments that pay taxes to the government and are operated by them.    

[clippers]

Aren't China trying to eliminate competition for their Digital Yuan, that's why they crack down on mining in the country because they want to make sure that Digital Yuan will do good? I don't get how they don't say that they want to do it because they want to reduce carbon contribution, most articles don't even mention it.

If China directly say that we restrict Bitcoin mining in order to achieve the goal of carbon neutrality, it is tantamount to telling the public that there is no problem with cryptocurrency but only to achieve carbon neutrality. In this way, the second point cannot be achieved, restricting people's participation in the cryptocurrency market to prevent losing money.

It's always better to get information about China from a Chinese.
I don't trust the crypto news websites,that are spreading FUD,rumors and gossips about China and the cryptocurrency miners located there.

So the Chinese government wants to ban Bitcoin,because many Chinese are buying shitcoins and losing money?
That doesn't make any sense,why don't they just ban shitcoins and leave Bitcoin and ethereum.

I get the idea of banning crypto mining because of carbon neutrality,but there are many industries in China that are producing way more CO2,but the government won't ban them,because it will cause unemployment.

Thank you for your trust. I am also very happy to share the real information about China with the members of the forum. It may be that my expression is not perfect, and you have misunderstood what I mean. Just like the shitcoins you mentioned, there may be tens of thousands of projects imitating shitcoins in China. These people issue cryptocurrency only to defraud the public of money. I must admit that most Chinese projects are rubbish, and new rubbish is generated every day. Only by banning BTC, the source of cryptocurrency, can people be afraid and stay away from cryptocurrency. In fact, China Central Television once did a program that explained in detail the process of issuing digital currency on UNI. The purpose is to distinguish these low-cost garbage without any innovation from BTC, but few people receive it.

I read what you said, I don't blame anyone in this case China vs Bitcoin, I know very well the Chinese brain, their actions in trading excellence, Bitcoin is their next target.

So, back to your topic and your story, I turn to ask you.
• where did you get all the stories from.
• what you are telling has sources to read.
• and one more thing, are you one of a group of governments that are currently viral.

As far as i know china is cunning, they won't reveal anything secret, before they make big profits.

Everything is my guess. For carbon neutrality, please refer to this paper: https://www.nature.com/articles/s41467-021-22256-3.

By the way, I am not a government worker, and Chinese government workers are not allowed to enter the Bitcoin forum.

[clippers]

If China cared about the environment and wasn't interested in eliminating the competition as a preparation for the digital yuan, why not kill off every industry that doesn't use renewable energy? If too much fossil fuels are used in the mining operations in China, why not give the miners a deadline of 1/2/5/10 years to switch to better sources of electricity instead of preventing them from conducting their businesses within a few days or weeks?

There are uneducated people all over the world who invest in bitcoin among other things. Your statement that they are trying to protect its citizens is simply wrong. Gambling is if I remember correctly banned in China, but you are allowed to play lottery in locations the state deems as good (the ones run by the state). How do you comment on that? Chinese citizens are protected from losing money in private casinos and sportsbooks, but they are free to lose it in establishments that pay taxes to the government and are operated by them.    

China's policy is the result of many considerations. Maintaining carbon neutrality, protecting the people, and preventing capital from flowing out of the infrastructure sector are all part of the reason. If the three problems are resolved separately, there may be a better choice, but this is not possible. If clean energy mining is used just to solve the problem of carbon neutrality, there will still be people who use cryptocurrency to obtain illegal income, and there is no guarantee that the funds will be used in infrastructure.

In fact, I admit that every country has uneducated people who invest in cryptocurrency. But you may not be able to imagine how big this ratio is in China. I study cryptocurrency in China every day. Many people buy shibcoin but don't know who Satoshi Nakamoto is. This is unimaginable in other countries. If 90% of the people in an industry do not understand this industry, and the industry is still difficult to be supervised by the government, what do you think is a reasonable approach?

As for gambling, I don’t know if my understanding is striving, because I have never bought a similar sports lottery. But buying sports lottery tickets in places operated by the state can guarantee that your profits will be honored, which may not be possible in some illegal places. Please correct me if I am wrong.

It is a pleasure to communicate with you.

[Fortify]

There are some misunderstandings about China on this forum. I do not comment on the policies of any sovereign country, but in ten years, we may see a China that actively embraces Bitcoin. Although China may still issue policies that have a negative impact on Bitcoin now.

You are commenting on the policies of China and in a free society you should never have to apologize for displaying a rational opinion. China is a country based on censorship - both from the government who would rather hide incompetence than deal with it correct and the people who accept the system of self censoring. It is a very insular society and that is very dangerous for the world - The CCP would rather make an imaginary enemy than admit to certain failures. Until Xi Jinping came a long they always claimed a peaceful path and were a lot more respected, he has thrown that all away, now we see the war mongering and childish insults every day. This move was partly in response to environmental concerns but I think a large part of it was the easy money laundering route it gave people to get money out of China. The CCP wants absolute power (Nazi Germany anyone?) and any sane official wants their money out of reach of the communist party - Bitcoin was providing a very easy way to move money abroad.

[franky1]

How about 'capital fight'? There is a reported $50 billion going out of China through crypto which is against the Chinese rule. I think this is only one reason why they suddenly put a stop specially on bitcoin because they don't want their people taking out their money out of the country.

there is not $50bilion "going out"
when a chinese person puts their fiat into a bank account. and then wires it to another bank account
the funds are still in a chinese bank account. all that has changed is the name of the chinese bank account holder, holding the chinese fiat.

chinese fiat is never destroyed, it still circulates chinese banks. its just the bank account name the balance is held under that changes

when someone buys bitcoin. another person is selling.

china does not like "red letters" being sent abroad. where bank notes end up in other countries. and then held by say american exchanges
but wire transfers stay in the chinese banking system where only the chinese named account holder changes

..
as for mining
china is on the mission to stop home-hobbiests/ illegal miners that are in regions of fossil fuelled domestic electric networks

as for exchanges
china is on a mission to stop the non-regulated/uninsured exchanges that dont pay taxes. exchanges that accept chinese fiat deposits but dont have money-service licences, or do tax evasion
any exchange that accepts fiat deposits is not immune to fiat laws, just because they also handle crypto
crypto does not immunise exchanges from their fiat laws if they also accept fiat as half of their business

for instance the UK banned binance. due to binance not wanting to comply to all UK fiat laws
(promising high return investment options, but not supplying a insurance scheme should binance not meet its promise)

[ropyu1978]

The reason China banned bitcoin, maybe they are afraid of being competed, because bitcoin can't be controlled by the Chinese government, maybe they are afraid, their yuan currency collapses, the problem of running out of carbon, lack of energy, which is said to be caused by bitcoin mining, it may be just a small problem... but I think they are afraid of being rivaled by bitcoin..

[amishmanish]

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. --snip-- The reason for the Chinese government to create FUD is not to suppress the price of Bitcoin, but to prevent ignorant people from losing money in the cryptocurrency field.

LOL..I call this bullshit if this is your honest "understanding" of the CCPs actions. In the worst case, you are probably just another one of CCP social media warriors whose job is to help manage China's "image".  The Chinese have for long maintained a list of the "innovative" cryptocurrencies and routinely rank shitcoins like EOS and NEO above Bitcoin. So please don't insult the intelligence of people on this forum by coming up with excuses like, "Oh, they don't want people to go bankrupt from shitcoining".

The only reason for these bans is that the Chinese probably want people to use their centralized CBDC rather than cryptocurrencies.

Another important reason is that for all the propaganda that CCP drills in the society, i believe that it must be refreshing for so many of the Chinese nationals to actually have a voice in shaping the future of cryptocurrencies projects. The Chinese people are devilishly clever and pretty brilliant, nobody can deny that. Yet, the CCP strangles the natural yearning of man to have a free voice and free thought. That yearning finds expression in crypto communities. All the communities that i have seen in Alt-coins, the Chinese are usually one of the most active ones. I don't think the CCP can have so many people getting ideas of democratic voting, governance and decentralization into their heads.

A ban is then the easiest way to control this and keep the people in control.

So frankly, stop bullshitting the people on this forum by claiming to represent "China" and then making excuses for something that the CCP does to maintain control. If you are truly a free-thinking man/woman behind that screen, stop this charade.

[DapanasFruit]

It's always better to get information about China from a Chinese.
I don't trust the crypto news websites,that are spreading FUD,rumors and gossips about China and the cryptocurrency miners located there.

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. Unlike the United States or Australia, many Chinese who invest in cryptocurrency don’t know what decentralization is, just blindly follow the trend to buy some unknown coins. Chinese investors lack the most basic understanding of the cryptocurrency industry, most people end up in bankruptcy. Only by restricting mining and restricting bank card transactions can China prevent these ordinary people who have been deceived by become parvenu from joining cryptocurrencies.

So the Chinese government wants to ban Bitcoin,because many Chinese are buying shitcoins and losing money?
That doesn't make any sense,why don't they just ban shitcoins and leave Bitcoin and ethereum.

I get the idea of banning crypto mining because of carbon neutrality,but there are many industries in China that are producing way more CO2,but the government won't ban them,because it will cause unemployment.

There you go...points raised well. Now, on carbon neutrality,  why ban the whole thing when there are some miners that are really using cleanly-sourced energy? I think the Chinese government is just using any probable cause as a way to divert the attention of some to the real issue. Anyway, I actually do not care if China is not going to allow Bitcoin or any coins to be held by its people. And it is actually good thing for Bitcoin to have miners leave the country so no single FUD can be coming from China in the next few months. Are we not tired of this same stories again and again?

[hardiksoni966]

three state-backed organisations, including the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China issued a warning on social media.

[(o)(o)ilikeboobs(o)(o)]

Banning cryptocurrencies to combat the ignorance of the Chinese people is a bad excuse. Why don't they organize education instead of banning cryptocurrencies or Bitcoin? Bitcoin mining is very profitable for the miners of this country. Apparently, the ban on cryptocurrency mining has cut off a portion of the profits.
I think China's CBDC currency has been tested, so the most likely thing is that they will put them into circulation to dislodge businesses that have already entered the field of cashless payments like Alipay, Wechat and other money transfer services.

[zasad@]

I am a Chinese who was exposed to Bitcoin earlier. I hope to analyze the reasons for China’s Bitcoin-related policies to eliminate FUD against China.

Recently, FUD about China is often discussed in forums. China has successively issued a number of policies to prohibit the use of Bitcoin in China, including banning mining and banning bank card transactions in Bitcoin. Many people think that the reason why China is doing this is the decentralization of Bitcoin that is difficult to regulate, but this is only a small reason.

The biggest reason for China's ban on Bitcoin is carbon neutrality. China’s carbon strategy roadmap is to achieve carbon peaks before 2030, achieve carbon neutrality before 2060, and even initially achieve carbon neutrality by 2030. According to the Bitcoin Mining Council report on July 1, 2021, 56% of the energy consumed by Bitcoin mining is renewable energy. But in the past in China, although the specific proportion was not announced, the proportion of renewable energy such as hydroelectric power generation must be far smaller than this figure. This is not conducive to China's goal of achieving carbon neutrality. In order to achieve this goal, all industries need to make way for it.

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. Unlike the United States or Australia, many Chinese who invest in cryptocurrency don’t know what decentralization is, just blindly follow the trend to buy some unknown coins. Chinese investors lack the most basic understanding of the cryptocurrency industry, most people end up in bankruptcy. Only by restricting mining and restricting bank card transactions can China prevent these ordinary people who have been deceived by become parvenu from joining cryptocurrencies. The reason for the Chinese government to create FUD is not to suppress the price of Bitcoin, but to prevent ignorant people from losing money in the cryptocurrency field.

Finally, China's current development focus is still in the manufacturing or infrastructure fields. In China, finance or economy is still a very abstract word for most people. China's overall strength in the financial field lags far behind the developed world. Therefore, the current strategy of the Chinese government is to stabilize the economic foundation first, and after improving the people's knowledge and living standards, it will begin to develop at the financial level. Before that, it is necessary to ensure that China's overall capital flows to the real economy rather than various financial field.

There are some misunderstandings about China on this forum. I do not comment on the policies of any sovereign country, but in ten years, we may see a China that actively embraces Bitcoin. Although China may still issue policies that have a negative impact on Bitcoin now.

In China, everything is the same as in Russia. If citizens are sick with diarrhea, but to combat this, all public toilets in the country must be closed and the problem will be solved.
How does energy work in China? Can the Chinese authorities channel this electricity to other parts of the country, or will they build production on the site of former mining farms?

[Bitstar_coin]

If they feel innocent people are being ripped off by some crypto projects they can always do the most simplest and basic thing which is openly educate their people about the implications involved in investing in crypto rather than stooping so low to create unnecessary fud, if you say this fud are not meant to suppress the price directly but their implications is affecting price indirectly, I think there is a deep interior motive behind their constant banning of btc and not just this simple theory of yours.