Carvalho’s Mind-Blowing Theory explains why China Banned Bitcoin Mining!
The famous bitcoin entrepreneur John Carvalho may be onto something. In the recent episodes of the Tales of the Crypt Podcast, he posed his theory: why did China shoot itself on foot by banning Bitcoin Mining early in the year.
Besides Carvalho’s Mind-Blowing Theory explanation, many questions are still in the mind of the crypto community. Is the chain making its way to the CBDC (Central Bank Digital Currency)? Does China have energy problems? Or, CPC cutting the wings of the Chinese Billionaires? Or China already has lost the battles of the Hashpower? Is Bitcoin too dangerous for China?
These questions are pretty valid. Even in the interview, John Carvalho summarizes the current China situation in one phrase:
“I refuse to believe that China is stupid.”
According to Carvalho, China has made too much money in the mining business alone, and they are now controlling the ASIC manufacturers. Further, not only this, their mining machines inflate the value of the chips.
Carvalho’s Mind-Blowing Theory
Disclaimer: The below text is full of assumptions and suppositions!
Carvalho, in his interview, stated that he doesn’t have any proof of what’s happening. Moreover, he added that every cycle China controls the price of Bitcoin to get more BTC. They sell and use the security to short the Bitcoin. Then, they reaccumulate when the bear market arrives. Although, this time, China was facing a more sophisticated and mature market. However, their FUD techniques were not working. Simply, people were not falling for their tricks, so they had to bring it up the few notches.
