Bitcoin entrepreneur John Carvalho may be on the cusp of something. in a A recent episode of Tales from the Crypt Podcast, he put forth his theory about why China shot itself by banning bitcoin mining early in the year. We at NewsBTC are straining our minds trying to come up with possible reasons for this strange decision.
are they Make room for their CBD? is CPC Cut the wings of Chinese billionaires In all fields? Were they already Losing the hash power battle? Is China suffering from energy problems? This is it ESG case? where are they Close the exit ramps before Evergrande Collapse? He is Bitcoin is very dangerous? why are they Retire from a billion dollar business Which they controlled? why? why?
It has been a long time since I last joined the TFTC for a chat.
I had a great time discussing various Bitcoin topics and “Good morning tweets” topics.
check it out! https://t.co/TVbOEjHWFD
– John Carvalho (@BitcoinErrorLog) November 2, 2021
The guest sums up our position in one phrase, “I refuse to believe that China is stupid.According to Carvalho, they make a lot of money in mining alone, and they also control ASIC manufacturers. Not only that, miners inflate the value of chips. They control these businesses as well, along with Taiwan and South Korea. Why shoot the goose that lays golden eggs? Doesn’t make sense…unless…
Bloen’s theory of mind Carvalho
Warning: the following text is full of guesses and assumptions. “I could easily be wrongCarvalho said, “It was the first thing Carvalho said. He has no evidence that this is what is happening and neither does NewsBTC. Let’s take it as an intellectual exercise. So said Carvalho.”play the game‘ Anyway. And if he could come up with this plan, so did the CCP leaders.
According to Carvalho, China is manipulating the bitcoin price every cycle to get more BTC. They sell, use collateral to sell bitcoin, and reaccumulate when a bear market hits. But this time, China was facing a more mature and developed market. Their FUD techniques weren’t working. People did not fall for their tricks. Therefore, they had to turn it a few degrees.
The main ASIC manufacturer, China’s Bitmain, had a new generation of ready-made miners. So, the CCP “I decided to create an order for the machine post and combine it with FUD.“As they usually do, they sold their bitcoins and made their shorts. After that, China banned bitcoin mining and the entire country stopped ASICs. The world considered the ban real, just.”See retail.This is the first time this has happened. After that, China sold a small portion of ASICs to the United States.
According to the latest stats, the United States now provides the largest percentage of Bitcoin hash… Or does it? “Everyone has this novel where China stupidly left mining and gave it to the United StatesCarvalho said not convinced. A few months after the Chinese ban, American mining companies are suddenly on everyone’s radar. But, is this really what is happening?
If the theory holds up, China will return to the mining game
This is price gouging on another scale. China has come up with a way to get more bitcoins against traders and buyers of ASICs in other countries. They got rid of the old equipment, and Bitmain will provide new machines soon. After that, China will buy back its bitcoins and operate the next generation of ASICs. According to Carvalho, they may have already done so, and they don’t sign blocks or sign their blocks differently. If true, they will unblock bitcoin mining soon enough, and bring up the story of an “Asian mining revival.”
The host of The Tales From The Crypt, Marty Bent, is not convinced. He argues that we should separate CCP from individual Chinese miners. It should be noted that Bitcoin mining is Bent’s area of expertise. He himself is a miner and is involved with some of the major bitcoin mining companies.
According to Bent, there were definitely mining farms operating in mainland China and they moved to the United States. And the operations are great, at that. He thinks the Chinese may not have moved all of the retail to the US, but they certainly did.”physical quantity.He also believes that even after the ban, there is definitely still a hash rate in China.
According to Carvalho, there is anecdotal evidence that contradicts this theory, but it is only anecdotal. “We do not have enough information about China“He says. Bent agrees and adds that due to the unauthorized nature of the Bitcoin network, we can never really know what is going on. But,” he says.Foreign buyers get access to new miners.At least for pre-orders. Take this for what it’s worth.
BTC price chart for 11/08/2021 on Bittrex | Source: BTC/USD on TradingView.com
Conclusion and Other China Theories
According to Carvalho, using web traffic metering tools, you can verify that the traffic to Chinese mining pools is roughly the same as it was before the ban. The signature of the blocks can be manipulated. “The only reason we know who’s mining what is because they say they’ve been mining it,He says. What does this mean? Are the Chinese actually mining? Is there an increase in unsigned blocks? Or are they only signing on as non-Chinese entities? They could have planned this for a long time, putting the blocks in place.
The TFTC host put forward an alternative theory. This one is based on His Conversation with Edward Evenson of Braiinswho lived in China. According to Evenson, this year marked the centenary of the Chinese Communist Party, and the theme of the celebration is “harmony”. Unfortunately, they consider Bitcoin mining to be inconsistent. This is the reason for its ban. Once the memory has passed, they will quietly let her return.
Perhaps, but according to Carvalho, the Chinese quietly returning to mining is exactly what will happen if either theory is true. He admits that in order to confirm his theory, serious research must be conducted that he could not do. So, he’s leaving it open to the public to go ahead and do that. NewsBTC, in turn, published this article. It’s your turn now.
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