Listen to Article

China’s “success” in shutting down bitcoin mining will hurt China the most, says Microstrategy CEO MIchael Saylor. Saylor’s company obviously has a huge stake in the world’s first and largest capitalized decentralized crypto.

Microstrategy, a business intelligence firm that has made news repeatedly for putting its money where it forecasts, with huge buys of Bitcoin, has seen its personal fortunes plummet with the sharp sell-off of cryptos since April.

But Saylor says China and other countries rejecting or stifling the blockchain revolution will be left behind in every way, including financially. Speaking on Bloomberg TV, Saylor said:

“I think, given the bitcoin growth rate, this will prove to be a trillion-dollar mistake for China. It’s a tragedy for Chinese miners [and] it’s a geopolitical mistake for China the country—but I suppose they could afford to make a trillion-dollar mistake.”

China had been providing more than half of bitcoin’s mining capacity until their recent crackdown. As of a week ago, more than 90-percent of mining centered in the Sichuan region had ceased.

Saylor said he believes China’s loss could be a gain for the U.S.:

“It’s a great windfall for North American bitcoin miners whose costs are the same and they're going to generate 50% or 75% more revenue for a while because the China business has been taken offline.”

Because of the way the Bitcoin network works, a drop-off in mining results in higher amounts of bitcoin being available to registered mining nodes, before their cap is reached.

Saylor also expressed optimism regarding regulatory conditions in the U.S. going forward, though that remains to be seen. Treasury Secretary Janet Yellen talked down cryptos, but Saylor says the Biden administration also features a “new class of regulators [that] are progressive and more enlightened on bitcoin.”

Support the Trends Journal with these great products

  1. Eagle11 1 year ago

    Optimistic regarding regulatory conditions? I thought a prime advantage was that bitcoin was unregulated, untraceable and decentralized. Now regulation is welcomed? Government involvement is a good thing?

    People smarter than me are gung ho on bitcoin so I have to assume they know whereof they speak. But the narrative keeps changing.

    Plus, I never hear what happens if/when the government(s) declare it illegal to either hold or transact business in BTC.

  2. George Threshman 1 year ago

    Bitcoin is like the Tulip Craze
    Nothine tangible to support it.

  3. […] How the U.S. and other nations deal with crypto technologies could determine whether they make the most of China’s rejection of what could well be the next sea change of technology. Analyst Michael Saylor recently opined that China’s moves are destined to prove costly (see our 29 June, 2021 Trends Journal article “CHINA MADE A TRILLION DOLLAR MISTAKE, SAYS MICROSTRATEGY CEO”). […]

Leave a reply

©2022 The Trends Journal

Log in with your credentials

Forgot your details?