If China wishes, it can bring down Bitcoin and all other cryptocurrencies. Because she has more than you think.
The value of bitcoin is based on the law of supply and demand. It’s nothing new. Thus, if those who have a lot of them part with them, they can directly act on the currency. After taking Bitcoin down, when it caused the exodus of miners, China has another weapon to bring down the queen of cryptocurrencies. This weapon is called Bitcoin. In its treasures, the Middle Kingdom has even more than MicroStrategy. Which makes him a worrying bear for the currency.
China holds more than 1% of bitcoin in circulation
MicroStrategy, despite its 130,000 BTC, is no longer the whale to be feared from now on. China stole the show for a few years, and we didn’t know it. In effect, celestial empire now holds 194,775 BTC in his treasury. Making nearly 1% of all bitcoins mined so far.
However, the country is openly opposed to cryptocurrencies. We recall that in 2021, she issued a decree and made anything related to crypto currencies illegal. This has resulted in the exodus of minors to the United States or Canada. So, where does all this money come from?
These more than 190,000 Bitcoins that China has actually come from the fall of the PlusToken scam. But here too, many experts doubt the real sum that the country holds. In fact, she might have more than we know. The public power maintains discretion to this effect. No official information has leaked as to the stock held or the number already sold.
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A whale to take seriously for the cryptocurrency market
Cryptocurrency is not just bitcoin that China has. His treasury is also filled with several other cryptos. All this, I believe, comes from the bust of the PlusToken scam. The scam that cost nearly $5.7 billion ended in 2020, after authorities discovered the pot of roses. They then proceeded to the arrest of several people who were involved in it and had seized all the sums that will never be returned to the victims.
From this scam, the authorities seized at the time:
- 194,775 BTC
- 79,581 BCH
- 833,083ETH
- 6 billion DOGE
- USD 213,724
- 487 million XRP
- 74,167 DASH
- 27.6 million EOS.
A beautiful jackpot that now makes China a big whale who can decide strike a blow in the cryptocurrency market. At the time of the seizure, a court asserted that PlusToken’s cryptocurrencies would be “treated in accordance with the laws” and “confiscated for the benefit of the national treasury”. It is therefore the treasury, in agreement with the government, which would decide what to do with it.
Selling being the most probable decision, this could seriously shake the market. And if a few frightened whales also sell their holdings, the market could take lasting damage. Isn’t this also a flaw of these currencies?