Don’t Bet Against Beijing’s Efforts to Smother Bitcoin

Don’t Bet Against Beijing’s Efforts to Smother Bitcoin

don bet beijing efforts smother
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Don’t Bet Against Beijing’s Efforts to Smother Bitcoin

Bitcoin has recovered some of its losses after Chinese Vice Premier Liu He’s pledge to crack down on mining and trading on Friday. But investors should be cautious with all crypto as far as China is concerned. The government has its own reasons for smothering the sector, and a track record that suggests it will follow through effectively.

The first and most obvious reason is the stated one: to limit the risk of financial excesses becoming a broader social issue.

In some areas, particularly real estate, the Chinese government has struggled to seriously control expanding leverage and risk. But crypto advocates shouldn’t confuse that for laxity generally.

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