I analyse stuff all the time, keeping my ear to the ground. One thing that is blatantly obvious is that the relationship between the USA and China is strained. In fact, there is an awkward feeling between the UK as well. Especially with the obvious human rights abuses going on, that the Chinese government don’t want the rest of the world to be involved in.
What could cause Bitcoin to go up high?
Bitcoin is really controlled by China. There are four miners in China that control over 50% in bitcoin. How do we know that China won’t intervene (in controlling bitcoin)? How many countries want to use a Chinese-controlled currency? Investopedia
I don’t agree with Investopedia. This statement actually shows a lack of understanding of how the blockchain actually works. China doesn’t control Bitcoin, maths controls Bitcoin and people using it. China is a major Bitcoin miner. If China shut down Bitcoin mining, it would just mean the blockchain might slow down for a while, other miners would have to take up the slack. It would not cause a drop in the PRICE of the coin because Bitcoin would still exist, ergo, there would be more demand for Bitcoin and not enough mining to produce it – prices go up. (Supply and demand). However, there could be an initial drop while the market realigns itself.
The second alternative scenario is that other countries believe the narrative that China has “control” of it and start mining heavily themselves and buying large amounts of the currency – prices go up.
The third alternative is nothing happens. The other governments take no action, crypto’s demand increases and prices go up.
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