Key Takeaways:
- The Chinese government took its anti-crypto stand to the next level.
- The country plans to buy all the existing Bitcoin in circulation.
NEW DELHI (CoinChapter.com) — It is finally happening. China has shared plans to “end the scourge of cryptocurrency markets” by buying all the Bitcoin (BTC) available.
A Chinese official familiar with the matter told CoinChapter (probably risking his life) that the premier instructed the finance ministry to draft an actionable course to achieve the goal.
China’s Crypto-phobic History
China has historically been severely anti-crypto. The government’s crypto mining ban in May 2021 caused one of the worst crypto market crash in recent history. Ironically, the Chinese people were the first to embrace cryptocurrencies.
Furthermore, Chinese citizens started accepting crypto payments for services as early as 2013. The first crypto exchange in China began in 2011. However, by 2017, the country had started gradually banning different cryptocurrency-related actions.
The country’s leadership looked for ways to arrest cryptocurrency‘s growing popularity. Officials feared that Bitcoin and other cryptocurrencies might devalue and replace its fiat currency. After failing to stem the sector’s growing popularity, China banned it outright in 2021.
The Plan To Kill Bitcoin (And Crypto)
Despite the ban (somewhat autocratic, but we don’t judge) on crypto, the Chinese populace has refused to give up on crypto. Moreover, VPN and offshore exchanges have provided Chinese traders with many loopholes to exploit.
Also Read: Will Pi Network Token Price Crash to Zero?
Additionally, the exploits of crypto hackers in the neighboring DPRK likely motivated the Chinese not to let go of cryptos. As a result, the government was forced to consider extreme actions, and some mad genius decided the best way was to buy all the available Bitcoin in circulation.
Yes, you read that right! China plans to buy all BTC tokens in existence. At writing, BTC price was $28,431 per token, which would mean China needs to shell out roughly $550 billion.
But that’s at market price. Most BTC tokens are in the wallets of private investors or crypto firms. As such, China would likely have to offer some premium to BTC holders to part with their beloved tokens.
Though the MSS might be successful in “politely requesting” some users to part with their BTC holdings, it is likely that hardcore Bitcoin lovers would like to sell their BTC at nothing less than $100,000.
The price level has been a dream for many in the crypto world, and with the threat of an MSS visit, users might try to realize their dream before giving it up. Additionally, the money would not hurt.
The Math (And Money) Involved
Considering the current market supply, that would require the Chinese government to shell out $1.93 trillion.
The annual GDP of China totaled $17.94 trillion in 2022, which would suggest shelling out $1.9 trillion might be an issue. However, the country’s official general public budget for 2023 projects a deficit of nearly $546.1 billion.
Additionally, the budget deficit has nearly tripled since 2013’s $174 billion. As such, burdening the economy with an additional $1.93 trillion would definitely set the nation on the path of economic ruin.
Furthermore, if venture capitalist Balaji Srinivasan’s $1 million per BTC prediction comes true, it would devastate China, and the resulting shockwave could destabilize global markets.
Yet, China seems desperate enough to suicide bomb Bitcoin and crypto.
In case it wasn't clear, the above article is an April Fool's Day prank.
