Crypto Ban: Mike McGlone Predicts Economic Downfall for China
Bloomberg expert, Mike McGlone, explained in a tweet earlier today the implication of China’s mining ban. According to the Chief Commodity Strategist, China may have shot itself in the foot following its crackdown on mining operations in the country. McGlone noted that this could be the beginning of an economic downfall from the zenith.
Mike McGlone is a Bitcoin maximalist and further a believer in the $100,000 price projection for the flagship cryptocurrency. He faulted the decision of the Asian giant, China, against miners which began in May and continued the following month. China has managed to build a name for herself as an economic giant contending with nations like the US. However, its mining ban could make her lose her place as an economic giant, according to McGlone.
McGlone also made direct remarks on stablecoins backed by the US dollar. They include Tether (USDT), Binance USD (BUSD), Circle USD (USDC). In his tweet, he claimed that contributed partly to the upper hand the US dollar maintained over the Chinese Yuan.
China Looks to Gain Hegemony over Global Economy with Digital Yuan
Interestingly, China hopes to gain hegemony over the US Dollar with its central bank digital currency (CBDC), the Digital Yuan. The Asian country has made significant progress on the experimentation of the Digital Yuan, even recording 73 million transactions across over a million instances during the first phase. According to a published whitepaper, the estimated amount transacted during the trial was $5.3 billion. The People’s Bank of China (PBOC) believes the country would be able to achieve widespread adoption of the Digital Yuan.
China’s ban had come after it reported that mining operations resulted in high electricity consumption and environmental pollution across the country. Its ban had witnessed a mass exodus of miners out of China to other regions such as Texas, Canada, Iran, Kazakhstan and Serbia.
Elon Musk Gives Impression of Tesla’s Resumption of Bitcoin Payments
In another development, Tesla CEO and billionaire, Elon Musk has hinted that the EV manufacturer may resume accepting Bitcoin payments for its electric vehicles. Elon gave this impression during the B-word July conference, where he had a talk with Twitter founder, Jack Dorsey and CEO of ARK, Cathie Wood on Bitcoin. Back in May, Elon had tragically announced that Bitcoin payments would be stopped owing to environmental concerns from mining, instigating a market downturn.
Elon Musk’s comments come against the backdrop of the BMC’s declaration that Green BTC mining was now positioned at 56%. Earlier, in one of his crypto-themed tweets, Elon Musk had given this as a condition for the reinstatement of Bitcoin payments.
It has been several weeks since the BMC’s announcement and most market observers expect Elon to stay true to his tweet. During the conference, Elon Musk also declared that he still had a large holding of Bitcoin, Ethereum and his favorite meme token, Dogecoin, which he still exerts considerable influence over till date.
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