Tuesday, January 31, 2023

China Deliberately Tried to Crash Bitcoin (and Failed) Says Bobby Lee

China Deliberately Tried to Crash Bitcoin (and Failed) Says Bobby Lee

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.

Also read: Patrick Byrne Promises ‘Largest ICO Ever’ for T-zero Blockchain Equities Platform

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‘They Told Me They Wanted the Price to Go Down’

“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.

Bobby Lee BTCC CEO
Bitsonline’s George Levy with Bobby Lee

Past, Present and Future of Bitcoin in China

Is the Bitcoin story in China finally over? Lee asked. Well, it depends how you look at it. In China, Bitcoin 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 Bitcoin, 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.

Bobby Lee BTCC CEO

Common Mistakes Lose Money for Bitcoin Speculators Everywhere

Chinese investors, like everyone else, make common mistakes when speculating on Bitcoin. Lee described how speculators have lost money, including these top four common mistakes:

  1. Indecisiveness to make an investment
  2. Not buying enough
  3. Selling after just a small gain
  4. Selling during a panic crash

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.

Lee: ‘Bitcoin Will Still Survive Without China’

“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 Bitcoin 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.”

Bobby Lee BTCC CEO

Miners With Sweet Energy Deals Take Note

China probably won’t ban Bitcoin 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 Bitcoin finished in China? And does it matter at all? Let’s hear your thoughts.

Images via Jon Southurst

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