Just over three months ago, China announced a ban on Bitcoin, including the mining industry, which was then banned by several provinces in the country led by Xi Jinping.
China justifies its decision with the dangers of Bitcoin price volatility, but also with Bitcoin's environmental impact with a carbon footprint that could reach 130 million metric tons of carbon by 2024. This estimated figure could then represent 5.4% of carbon emissions from electricity generation in the state.
Panic began to grip the Bitcoin market, which was ignited by Elon Musk's tweets, whose interest was evident: to manipulate the price of Bitcoin to his advantage .
China's ban on Bitcoin has caused a lot of fear among short-term investors
Elon Musk picked the worst possible time to announce the end of Tesla's support for Bitcoin payments amid concerns about Bitcoin's environmental impact. Yet, in early 2021, Bitcoin's impact was the same when it forced Tesla to buy over $1 billion worth of BTC.
Elon Musk subsequently explained that he continued to trust Bitcoin, but that Tesla would only support Bitcoin payments again when the share of renewable energy in the electricity used by the Bitcoin network exceeded 50%.
Such demands seemed rather huge compared to the world's leading economies, which do not even manage to reach 20%.
After that, the price of Bitcoin crashed, dropping from $50,000 to $29,000 in a matter of weeks. Many were talking about a bear market. Some have even said that Bitcoin will never recover from China's mining ban, which has caused the Bitcoin hash rate to drop.
At that time, many were short-sighted. I then explained that China's ban on Bitcoin mining was bullish for Bitcoin.
China's ban was the best thing to happen to Bitcoin
Some people have asked me why I am so optimistic. My answer was clear: it would rid Bitcoin of its biggest flaw.
The biggest drawback was the excessive concentration of Bitcoin hash power in China. This has been an argument that has been consistently used against Bitcoin for years. This also hurt Bitcoin's ESG score. China's ban quickly sparked a large exodus of bitcoin mining in the West .
Kazakhstan has also captured some of the equipment of mining companies and is emerging as a future headquarters. Although that the future leading area of the world for Bitcoin mining will be North America .
This is great news as ever-growing companies in America and Canada are making green mining a priority. At the end of June 2021, the Bitcoin Mining Council published its data: the share of electricity from renewable energy sources for the Bitcoin network exceeded 50% and reached 56%. Bitcoin's ESG score is already very high .
Elon Musk was expected to react, but he didn't. The Tesla boss preferred to continue to support Dogecoin, which seems to want to replace Bitcoin thanks to his support alone. Pure self-centeredness in my opinion. The problem is that he will make a lot of money to thousands of investors who blindly follow him.
Bitcoin is now free of the bottleneck with its hash power concentrated in China
Over the summer, it became clear that the Bitcoin bull market was not over. We were at the beginning of the second bull wave. Various reasons have allowed Bitcoin since the beginning of August 2021 to rise again, for to see its price again to exceed $50,000 by the end of the month .
We are now back to the same price that Bitcoin was at on May 14, 2021, with one major difference: we are now free from Chinese dominance of Bitcoin mining.
Bitcoin hash rate has been greatly restored and the Bitcoin system remains the most secure decentralized network in the world. The best is yet to come for Bitcoin. The big lesson from all of this is that when something happens that looks negative in the short term, you should make an effort to take a medium to long term view.
With Bitcoin, this is the key to taking full advantage of its revolution.
Those who did were able to accumulate more BTC at a discount. The others now regret not having acted. Let's hope for them that they finally take action in the coming weeks and months. This is important for their future in terms of money because what lies ahead for Bitcoin looks phenomenal.
I told you this months ago and I'll tell you again: Bitcoin will reach $ 100K in the coming months. Now I'm waiting to see what Bitcoin detractors come up with after the China FUD is gone for Bitcoin.