From a strategic standpoint, China made an enormous blunder with its attempts to throttle innovation in Bitcoin mining domestically. If prisons have taught us anything it's that things like capital controls do not work the way that the people implementing them intend when they decide to implement them. Even in a prison people still find ways to get cigarettes, drugs, and even paper currency. But even the richest guy in a prison would almost always give it all up to be free and on the outside.
What China is doing today is creating a prison for its citizens to protect its political power. Capital controls are just one symptom of an oppressive regime. And they are doomed to fail ultimately. Because most people want the same things from their life and government. They want to be treated fairly and to be left alone so that they can use their freedom to provide for themselves and prosper.
The purpose of the state should be to facilitate freedom and to only impede upon it in good faith. Banning Bitcoin mining so abruptly is not a good faith action by a government. It's disrespectful to the people that have been affected and it's harmful to the overall prosperity of the state long term. One of the primary goals of a government that wants to be successful is that it should use its power to promote the highest level of prosperity that it can for its citizens. That means helping people be productive. That's the whole purpose behind building roads, dams, sewers, electric grids, etc. etc. THAT IS THE BACKBONE OF WEALTH.
People might hate corporations for their greed but there is also a lot of wealth created because of them. I can buy a cheeseburger for a dollar at two in the morning because of greed. I have a wireless mouse because of greed. A king in 1500 by almost every measure is poorer than an average person living today in Western Countries because of greed.
The United States is dominating Bitcoin. We have 80 percent of the Bitcoin ATMs already. It's difficult to know for certain but we probably control 80 percent of the supply of Bitcoin as well.
My point is that if this thing does become worth 1 million dollars a Bitcoin the Chinese are going to look back on this period of time as a monumental mistake. Because they will have made the dollar the permanent world currency because most of the trading for BTC is settled in dollars and it will be an enormous market. It means all the third world countries with weak currencies will trade in BTC and dollars as well. If China were thinking clearly they would realize that they NEED to be in this market to protect their longterm power. They should lift the capital controls for this asset class.
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