This is how you know a great nation: its impacts are global. China is showing the world that on purchasing power parity (PPP), it is the world’s largest economy. And if you go back to economic history, in the last ten centuries, China has dominated the global GDP by at least six times.
So, that takes me to the cracking paralysis of Bitcoin which is now below $34,000 per BTC. Why? The ascension of e-yuan is here, and China has to clean all cryptocurrencies from the China-balance sheet at personal, corporate and sovereign levels. The message is simple: a future of cryptocurrencies with Chinese participation is doomed, but that does not mean that crypto is dead. China has voted to be in charge of its destiny and e-yuan is that future.
You do not serve two masters at the same time and China rarely offers choices. So, when e-yuan morphed, a day like this was expected. It was never a shock because to expect China to allow its wealth to be decentralized in Ether, Dogecoin, etc is total lack of awareness.
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But before you lionize Nigeria’s playbook on this – cleaning cryptos in its banking system, note this: China has offered an alternative to its people. When Nigeria banned, it did not offer any alternative. Hope that explains the differences in the game plan.
Bitcoin and other cryptocurrencies are plunging as anxiety spreads through the market — this time, after China took more steps to crack down on the digital coins.
The world’s most heavily traded cryptocurrency plunged 10% Wednesday to trade at $40,728 per coin, according to Coindesk, a news and information website specializing in crypto assets. That’s bitcoin’s lowest level since February. It also represents a 36% drop since hitting a record $63,347 in April.
[…[
Alongside bitcoin’s fall, several other major cryptos were down Wednesday. Ethereum plummeted 14%, trading at $2,978 — a 31% drop from a peak hit last week. The meme-turned-cryptocurrency dogecoin lost 13%.
It is typical China-style: fast, bold and big. The manufacturing capital of the world has banned “financial institutions and payment companies from providing services related to cryptocurrency transactions”. That is the only factual statement in that press release from the Communist Party. The other components are not true because China is not a passive party.
Yes, for the rise of e-yuan, a digital version of China’s currency, Bitcoin, Ether and other cryptocurrencies must make way. You may not blame them because in this world, there is fraternity when you are not rising but when you begin to rise, problems emerge. China will never trust the BTC ledger, decentralized or otherwise, and that is why the transition to e-yuan has started. For a nation which is admired and hated, depending on your GIS location, it understands the risks , and wants to manage them: move China away from Western cryptocurrency!
America, Europe and the world: a new order is here!
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Just before coming here, I was watching a Tech video on YouTube where one of the speakers said, ” the dip of cryptocurrencies are not due to China buyback”- (Emphasis added), I smipered! When a nation that sits amongst the top 3% and leads with the highest in population usage backs out of the market what do you expect as a sane people, A crash!
All this indeed doesn’t render the coin a dead means of transaction, rather expecting so much from it now could be unwise. However, I expect the coin to rise above the current state, and may hit 60,000 USD, there after normalize, but unnecessary hopes should not be placed on the coin this decade for the sake of your health.
Build a real economy, and subsequently you can position yourself to fiddle with virtual currencies. The problem we have in this part of the world is that we are nowhere near as smart as we think we are, so whenever push turns to shove, the real smart guys always beat us black and blue.
On what basis are we building our own crypto wealth? Just on trading digital coins? Which aspect of the technology do we own or control, and how many of the popular coins are mined locally? We rely on how Elon Musk feels or when China frowns to determine whether we go up or down, that’s sophisticated slavery.
Few countries decide the rise and fall of global economy, so if you are not eating on that table, you need to assess your options and see how you can become relevant in the grand scheme of things.
Let’s begin to think like creatures with decent amount of brainpower, our approach to economic dominance and geopolitical power continues to disappoint.
Before you blame it on leadership, also note that you haven’t demonstrated anything that sets you apart from folks running things, so if we put you there, you will equally disappoint.
Now go out there and work on things that build societies and improve wellbeing, and stop wasting away.
Indeed, Dr. Francis, I was watching an interview with Elon, and he said something that struck me, ” Nations wins war by Economics”, and frankly he is right.
Until we move off the mindset which roadside pepper traders carry and start mastering multidimensional thinking in mass scale, whilst creating sophisticated tools we would continue to lag. We need to start having a good number of head understand the financial engineering of the global economy, so we can create a system of sanity.
Look around, youth just think all that is needed to make an economy rise is having more money, it has never in history been on the wings of cash, rather system, and until we move off that destructive thinking pattern we would not rise.
This is the comment for me. I agree with you. Thanks