Here are the reasons:
1. Mining difficulty is variable: in a very bad scenario, somehow Bitcoin's hashrate dropped 66.7% in one second, right after a difficulty adjustment (which is very pessimistic, and very unlikely IRL) the block time will increase from 10mins to 30mins, and the difficulty adjustment time will change from 2 weeks to 6 weeks (which is 2016 blocks). This will cause slower txns and increased txn fees. However after the adjustment everything will become normal again. Also new players can join because mining is easier.
2. Mining costs are sometimes irrelevant to the hashrate: if the hashrate halves but the price of energy doubles, the final costs will stay the same.
China has a lot of cheap energy sources and people are not aware enough about energy usages so the government doesn't have enough motivation to cut down non-renewable energy usages. This applies to everything rather than just Bitcoin mining. There used to be PX projects (lots of money but lots of pollution) in China that caused city-wide protests and Chinese government will crack down protests if possible.
1. Mining difficulty is variable: in a very bad scenario, somehow Bitcoin's hashrate dropped 66.7% in one second, right after a difficulty adjustment (which is very pessimistic, and very unlikely IRL) the block time will increase from 10mins to 30mins, and the difficulty adjustment time will change from 2 weeks to 6 weeks (which is 2016 blocks). This will cause slower txns and increased txn fees. However after the adjustment everything will become normal again. Also new players can join because mining is easier.
2. Mining costs are sometimes irrelevant to the hashrate: if the hashrate halves but the price of energy doubles, the final costs will stay the same.
China has a lot of cheap energy sources and people are not aware enough about energy usages so the government doesn't have enough motivation to cut down non-renewable energy usages. This applies to everything rather than just Bitcoin mining. There used to be PX projects (lots of money but lots of pollution) in China that caused city-wide protests and Chinese government will crack down protests if possible.
So Bitcoin is dropping below $30,000?
Key support is breached?
Remember: in the crypto world, key support/resistance is just a number
Key support is breached?
Remember: in the crypto world, key support/resistance is just a number
Average Bitcoin News
Photo
For me it's not like $9000. It's more like $5000-6000
https://asiamarkets.com/china-evergrande-subprime-on-steroids-the-greatest-threat-to-markets/
China's Lehman Bros?
China's Lehman Bros?
Asia Markets
China Evergrande: Subprime on steroids, or crisis averted? | Asia Markets
Inside the collapse of China Evergrande - how it has unfolded and where to from here for one of the world's largest property developers?
https://www.reddit.com/r/CryptoCurrency/comments/pkux10/tether_the_collapse_of_chinas_evergrande/
I don't know how many people are HODLing USDT.
USDT is, in every way, absolutely trash
I don't know how many people are HODLing USDT.
USDT is, in every way, absolutely trash
reddit
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You don't ban the same piece of technology over and over again
If you do, it means you FAILED and that piece of technology can't be banned
If you do, it means you FAILED and that piece of technology can't be banned
China banned Bitcoin in:
2013
2017-2018
Late 2020
September 2021
So at least 4 times, yet it still failed
2013
2017-2018
Late 2020
September 2021
So at least 4 times, yet it still failed
2013- businesses in China are not allowed to accept Bitcoin. Also financial institutions are not allowed to participate in Bitcoin trades
2017-2018- crackdown of Chinese cryptocurrency trading platforms. Foreign exchanges are blocked. Still possible to buy OTC tho
Late 2020- crackdown of OTC trades. Harder to buy Bitcoin in China (this could really hurt, but it doesn't work)
2021- crackdown of Bitcoin mining. Still doesn't work
2017-2018- crackdown of Chinese cryptocurrency trading platforms. Foreign exchanges are blocked. Still possible to buy OTC tho
Late 2020- crackdown of OTC trades. Harder to buy Bitcoin in China (this could really hurt, but it doesn't work)
2021- crackdown of Bitcoin mining. Still doesn't work
So imagine:
You were the creator of some cryptocurrency and you had a lot of it. A few years later, that coin went up 1000000000x.
However, you the creator somehow lost access to your coins (losing private key, sold it early, or you're dead, etc)
Will you regret creating such a cryptocurrency?
You were the creator of some cryptocurrency and you had a lot of it. A few years later, that coin went up 1000000000x.
However, you the creator somehow lost access to your coins (losing private key, sold it early, or you're dead, etc)
Will you regret creating such a cryptocurrency?
One reason of people hyping up your crypto is knowing the fact that you lost access to your coins, so you have no control of your own coin.
YOU are the limitation of your own coin.
YOU are the limitation of your own coin.