The China crackdowns on cryptocurrencies were se quick and so harsh as if mining has always been a criminal activity. There are multiple reasons for this decision and speculations are endless. However, in this article we shall discuss one underrated reason on why the China crackdowns happened the way they did.
Taking a look at any hierarchical structure, we could safely assume that at any specific period of time there are more than a few groups seeking to climb to the top as the predominant elite to establish their dominance according to their own belief system. Obviously, China is no exception in that regard. Despite the fact that the Chinese communist party seems invincible, the latest developments in the crypto market were causing a radical shift in power inside china. The latest China crackdowns were an effort to fight this threat.
China Crackdowns against a Trojan Horse
As Bitcoin rapidly grew in price in the past few years, a small number of people and organizations gained massive amounts of wealth in a short period of time. However, the Bitcoin miners of China were not necessarily members of the Chinese Communist Party. In fact, many of these large companies were directly connected to US-backed investors in a decentralized form as well as numerous other western block countries.
There is no doubt that a wealth of multiple billion dollars will bring you massive political influence. At a certain point, China had to deal with a small number of wealthy groups or even people who were rattling the power structure with their opinions and demands. It was essentially a compromise to the political structure. As of why and how it happened. Well, Bitcoin didn’t really matter. When the mega mining factories were established in China, Bitcoin`s market cap was so too insignificant to be proposed as a threat.
On the other hand, with the power grid structure that china had, it was considered a great source of income for the government. Essentially, it was the continues price hikes that blew the whole thing out of proportion to reach a certain point where china had to make desperate moves in an effort to drive these powerful organizations out of the country.
People’s Republic of China
Regarding the crackdowns against the crypto exchanges, the problem was pretty much the same. The simple rule is, changes in the amount of income in different social classes specially the working class, will eventually lead to a shift in power. Looking back at history, one can see that a political structure tends to be much more fragile than it seems.
In order to preserve the structure in favor of a certain political party, a totalitarian administration will always limit the amount of income for the working class. This is due to the ideology that the working class should be busy with daily affairs so that they wouldn’t have the time or the money to tend to political matters. It is all about prioritizing, if someone is poor, their first, second and third priority is to make money for their families.
Cryptocurrencies on the other hand, had an amazing success in providing passive income for the Chinese people. This was another threat for the totalitarian administration for numerous reasons. With the extra money, people found a chance to travel to western countries, they demanded to immigrate to more international parts of china, they started questioning political decisions. At the end of the day, the ultimate apparatus for liberty is money. With that, millions of people found gained access to what they shouldn’t have, liberty.
And so, cue the crackdowns! Blow the horns of propaganda.
Is the threat over?
Although we can never know the real damage that was done to the political structure of China, one can be certain that with the enormous scale of the financial, political and social impact, the effects will last a long time. Furthermore, considering the hasty and brutal crackdowns, against a phenomenon that was making trillions of money for the country, we can surely deduct that the calamity has done great harm to the political superstructure and is views as a considerable threat.
Our Vision
We believe in crypto, not only for income but liberation as well. Although we’re not the first decentralized online exchange, we’re looking to be the best. We believe that the market should be accessible and the customer has the right to maintain as much anonymity as they desire. This goal is now possible thanks to our automated systems and 24/7 customer support to ensure a secure and reliable exchange process. You can exchange your cryptocurrencies and digital currencies on hi.exchange. Also, we have technical price analysis for Bitcoin and Altcoins, opinion articles and news on our blog to keep our customers up do date with the latest news and professional analysis for their investment journey.
