According to Microstrategy’s CEO Michael Saylor China has made its biggest mistake by implementing the crackdown on mining.
Over the last two months of correction, MicroStrategy CEO Michael Saylor has been aggressively accumulating Bitcoin.
The cloud computing company bought another 13,000 bitcoins earlier this week, bringing its total BTC holdings to above 100,000.
According to Bloomberg, Saylor, who believes Bitcoin has a bright future, China’s crackdown on cryptocurrencies might be a “trillion-dollar error.” Saylor told Bloomberg in an interview:
“The primary dynamic (driving the market) is the China exodus. There’s a forced and there’s a rushed exodus of capital and mining from China that was a bit of a surprise. china had 50% market share of Bitcoin and they were generating 10 billion dollars a year growing at 100% year-over-year. I think that given the growth rate of Bitcoin this will prove to be a trillion dollar mistake”.
According to Saylor, the Chinese crackdown has resulted in a surge of Bitcoin miners in North America.
The Bloomberg executive inquired, “What if this isn’t a dip?” and “How much has the firm considered the risk of a prolonged slide?” in reference to MicroStrategy’s recent aggressive purchases over the last several weeks.
Saylor responded that the purchases span a period of more than ten years. He also compares it to the smartphone revolution of the previous ten years. Saylor continued, “
“Bitcoin is the dematerialization of property. We are sucking the value out of gold, real estate, and other property assets, and collectibles and art, we are putting them on a blockchain and we’re giving out to the people. It’s a long term trend, it’s a million times more efficient than holding your property around on your back”.
Saylor also feels that the Biden administration’s new regulators are more progressive and knowledgeable about Bitcoin.
There has been a major outflow of miners from China to North America and portions of Europe as a result of a nationwide crackdown by Chinese officials.
The BTC hashrate has dropped by more than 40% in the previous month as a result of some miners disconnecting their mining rigs.
North American locations such as Texas and Miami are proving to be popular choices for miners looking to establish a base.
Miami Mayor Francis Suarez is focusing on establishing facilities to provide crypto miners with excess nuclear power sustainable energy options.
Furthermore, miners who have entirely ceased operations are now selling their mining rigs at a significant discount.
Mining manufacturers have been severely harmed as a result of this. As a result, Bitmain Technologies recently stated that global Antminer sales would be halted.