Friday, July 30, 2021

MicroStrategy CEO calls China’s crackdown on crypto mining a “trillion-dollar mistake.”

The Takeaway:

MicroStrategy CEO Michael Saylor said China's crackdown had squeezed the bitcoin industry out of the country.

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Michael Saylor, CEO and founder of MicroStrategy, has criticized China’s ongoing action against Bitcoin, saying it will prove to be “a trillion-dollar mistake.” In an interview with Bloomberg Technology, the entrepreneur said, “China had 50% market share of bitcoin, and they were generating $10 billion a year, in a business that was growing 100% a year, year-over-year.” Slayer opined that the Chinese government’s crackdown has “squeezed the [bitcoin] industry out of China.”

 

“This is a tragedy for Chinese miners.”

MicroStrategy CEO Saylor also said that cracking down on crypto mining is a tragedy for Chinese miners. Over the last few weeks, the crackdown forced miners to move their operations overseas, with the United States proving a popular destination. Many miners are moving to Texas due to their cheap energy prices and pro-crypto government. Reports indicate that Bitmain, Blockcap, Argo Blockchain, and Great American Mining are rumored to have moved their operations there. Several major mining pools announced to withdraw from China amid the crackdown. Also, earlier this month, the mayor of Miami had said that his city would welcome the displaced miners. 

 

MicroStrategy continues to accumulate BTC holdings. 

As reported earlier, on June 21, MicroStrategy added a further 13,005 BTC to its already considerable holding, which now totals at over 100,000 BTC, well worth over $3 billion. Saylor believes that China’s “rushed exodus of capital and mining” is currently driving the crypto market dynamic. He referred to his company’s own strategy as “long-term” and assessed that the leading cryptocurrency bitcoin is for property what the iPhone is for music. “Bitcoin is the dematerialization of property,” the CEO explained. “We’re sucking the value out of gold and real estate and other property assets and collectibles and art. We’re putting it on a blockchain, we’re giving it to the people,” he added. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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