Bitcoin Plummets Amidst China’s Crackdown Against Crypto Levels Up
As China’s crackdown against cryptocurrencies intensifies, the price of the most dominant cryptocurrency has also plummeted. Prices of other major digital assets like ETH (ethereum) were also down.
China’s hostility towards cryptocurrencies has started in 2017 after the country banned ICO (initial coin offering) to prevent the “[serious disruption of] the economic and financial order” according to a report by Yahoo Finance. But the country remained the world’s crypto mining hub not until Chinese authorities launched a crackdown against all crypto-related activities including mining in May.
In June, almost 90% of China’s crypto mining bases were already shut down which has resulted in the massive exodus of crypto miners from the country and sought refuge in other places like Texas and Kazakhstan. BIT Mining and Canaan were just two of the major mining companies that have moved their operation from China to avoid the crackdown by the Chinese authorities. As stated in an announcement, BIT Mining has already delivered 320 mining machines in Kazakhstan in June. The company also aims to deliver additional 2,600 machines by July. Canaan on the other hand has already established its first overseas after-sales service center in Kazakhstan according to a report by Forbes.
The action taken by the Chinese government has resulted in the nosedive of BTC (bitcoin) to $30K in May which started the market’s series of price crashes.
The intensified crackdown being implemented by China is again hurting the price of BTC (bitcoin). In recent data by Crypto.co, BTC (bitcoin) is now at $42,399.87 and has been down by 4.52% in a 24-hr chart.
r/WallStreetBets Welcomes Crypto to a New Space
The subreddit WallStreetBets is now taking back crypto after implementing a ban on the crypto discussion in May following an article by Bloomberg titled “WallStreetBets Bows to Crypto”.
“Due to the article that was written [by] Bloomberg who somehow felt that ‘WallStreetBets Bows to Crypto.’ Crypto discussion is banned indefinitely. I’ve read a lot of dumb articles written about wsb. This one takes the cake. P.S. Like always. Please be respectful.”
The subreddit group has created a separate subreddit dedicated to Bitcoin and other crypto discussions. On Sept. 22, an announcement from the user bawsel stated:
“It’s the same community, same format, same things you love about wallstreetbets, run by the same people.”
The subreddit group has now reached almost 11 million users. It was also responsible for the meteoric rise of GameStop and DOGE (dogecoin), Elon Musk’s favorite crypto.
The new subreddit WallStreetBetsCrypto has now a total member of 14,000 and the number is expected to grow given the high interest in cryptocurrencies. But the group still comes with rules like “no cheerleading” for assets or fundraising for them including “no political bullshit.”
Bitcoin.org Latest Victim to Cyberattack
Bitcoin.org, an informational site dedicated to helping educate crypto users about BTC (bitcoin) has fallen victim to a cyberattack.
According to Cøbra, the current pseudonymous operator of Bitcoin.org, https://t.co/OsFgRFRRZb was never been compromised. And the hacking incident happened two months after they migrated to Cloudflare. He stated that the hacker might have exploited a flaw in the DNS configuration after the website moved to Cloudflare.
The crypto community was also swift to act and send multiple warnings on Twitter.
The hacking indecent happened on Sept. 23 and the hacker has launched an attack posing as a giveaway promotion. The website visitors were greeted with a prompt that says “the Bitcoin Foundation is giving back to the community” as a gesture to “support our users who have helped us along the years.” The message comes with a QR code where users were asked to send coins and in return will receive twice the amount. Currently, the address has received ten transactions worth 0.40571238 BTC or $17,096.14.
After temporarily limiting access to some of the website’s features to protect users, Bitcoin.org is now accessible. Cyberattacks remain a major threat for crypto businesses and to cryptocurrencies’ existence and survival.
An Anti-Crypto as Head of the Office of the Comptroller of the Currency
As the Biden administration is being hit left and right for the passing of the $1B infrastructure bill, President Biden is set to nominate Saule Omarova, one of the major critics of crypto as head of the Office of the Comptroller of the Currency according to Bloomberg.
Omarova is a professor at Cornell University Law School where her work focuses on financial regulation and corporate governance. She has also served as a Special Advisor for Regulatory Policy to the Under Secretary for Domestic Finance at the U.S. Department of the Treasury under the Bush administration in 2006-2007.
Omarova, a known major critic of crypto has been very vocal in sharing her insights and critical views on the industry. In one of her tweets, she shared an article published by the Financial Times that resonates with her titled “Bitcoin’s rise reflects America’s decline” that highlights the most dominant cryptocurrency’s volatility and branding it as an “existential threat” that sovereign states like the United States need to regulate otherwise could lead to its fall. She also emphasized in her reply to a Twitter user that “getting out of the post-COVID recession via real economic growth” is of the “utmost importance.”
I find this piece insightful in using the Bitcoin story to emphasize the utmost importance of getting out of the post-COVID recession via real economic growth (investment, jobs, etc.). Decline of American power may not be here yet, but it's certainly a plausible scenario.
— Saule Omarova (@STOmarova) February 16, 2021
With an anti-crypto manning the OCC, the battle continues between cryptocurrencies and regulatory bodies. Coinbase, one of the leading crypto exchanges has been currently under fire by the US SEC. Regulations continue to threaten the existence of the crypto industry and hurdle its further growth to the mainstream.