Re:The biggest crypto lending company is a ponzi scheme
by SZJX on Monday December 13, 2021 @10:33AM
(#29540461)
First, there were already various capital transfer methods for the Chinese rich before crypto exploded (also, Jack Ma wasn’t really targeted to give up his wealth or whatsoever. Legally speaking any Chinese person can only transfer up to 50K USD abroad per year, and that’s the reason for the search after capital flight mechanisms, but that’s a separate point). Second, this could not be a particular reason why the crypto market would suddenly balloon 10 times in less than a year (why would Bitcoin’s value go up if it’s only bought/mined and sold constantly in exchange for fiat anyways, in the first place?). So yeah, capital flight has always been a use case of crypto, but it far from explains the market exuberance we’re seeing right now.
But... if you can build a datacenter in China with RMB, and pay chinese workers with RMB, and buy equipment and electricity with RMB, and get *bitcoin* out, then you've evaded the trap and liquified[1] your Chinese holdings.
It's not at all clear to me how much this hole has been closed, honestly. But it's possible this is still going on at a level high enough to explain crypto's continued expansion.
That said: duh, it's a bubble and it's coming down at some point. But there's real economics happening too.
[1] Or laundered, depending on how you swing.