The People’s Bank of China deliberately intended to drop the price of Bitcoin with its regulatory actions, said BTCC CEO Bobby Lee. But it didn’t work — the more China tries, the higher the price seems to go.
“Not even Satoshi Nakamoto himself could make the prices go down,” Lee told the audience at Money20/20 USA on Tuesday afternoon.
That long-suspected nugget of information — that the PBOC was in fact purposely trying to crash the BTC price to discourage investors — came from Lee’s direct conversations with central bank representatives.
“They told me they wanted the price to go down,” Lee said.
Is the Bitcoin story in China finally over? Lee asked. Well, it depends how you look at it. In China, cryptocurrency is not about payments and spending — it’s about investment and speculative trading.
Lee went over the price history of Bitcoin in China (which coincidentally is identical to BTC everywhere). Those bear markets, he noted, have a surprising correlation to PBOC regulatory leaks. However it’s not working any more.
“The more China bans cryptocurrency, the more prices go up.”
Lee was mobbed by selfie-seeking fans after his presentation in Las Vegas, where he gave out BTCC hats to the crowd.
Chinese investors, like everyone else, make common mistakes when speculating on cryptocurrency. Lee described how speculators have lost money, including these top four common mistakes:
The Chinese government saw this happening, and decided Bitcoin was still too unknown and risky. The last thing it wanted was unrest due to large amounts of people losing their life savings on volatile assets — and no-one was actually using it as money anyway.
“For these reasons, China has decided to suppress Bitcoin. No exchanges, no centralized trading, no price information, no ICOs, no Bitcoin, Litecoin or Ethereum — no more!”
There’s no longer any commercial exchange where people can buy bitcoin in China — BTCC’s sister company BTCChina also had to shutter its exchange business. It seems that large aspect of the cryptocurrency economy is indeed over, after several years of uncertainty.
However, he added that Bitcoin would still survive without China.
Bitcoin’s value doesn’t comes from the endorsement, acceptance, or regulation by governments. Instead, BTC value comes from the inherent failures, limitations, and inconveniences of its competitor — the fiat money system.
“The very fact that China is trying to choke Bitcoin, to wipe it out, is precisely the reason the bitcoin value is increasing.”
China probably won’t ban cryptocurrency mining per se, Lee concluded. However it may well crack down on miners “stealing” electricity to drive mining operations.
Referring to the infamous but rarely-discussed issue of miners doing deals with local officials to secure cheaper energy, he said if miners’ power source is legitimate, they won’t be affected.
Is cryptocurrency finished in China? And does it matter at all? Let’s hear your thoughts.