China’s Crackdown May Become a “Trillion Dollar” Mistake: Michael Saylor

Divya  |  Jun 26, 2021

Bitcoin evangelist and Microstrategy CEO, Michael Saylor sees China’s crypto mining crackdown as a great opportunity for North America. In an interview with Bloomberg, the entrepreneur said that Chinese actions could amount to a “trillion-dollar” mistake as Bitcoin’s market rate continues to accelerate.

Notably, MicroStrategy has been aggressively purchasing Bitcoin over the last few months. Last week alone, the publicly listed software company bought a whopping 13,000 coins worth $489 million, following the sale of its debt offering.

Michael Saylor Believes China's Mining Crackdown is Great for North America

Before China cracked the whip on cryptocurrencies, the country accounted for 90 percent of the world’s Bitcoin mining. However, most mining operators were left scrambling as various provinces implemented harsh rules to curtail their activities. 

In the aftermath of mining bans, most crypto mining firms are looking to relocate to the US and Canada and resume their activities. Referring to this phenomenon, Saylor said, “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.”

He added that given Bitcoin’s growth rate, this decision could prove to be a “trillion-dollar mistake.”

The business executive also indicated that the mass exit of miners from China has shifted the crypto mining industry’s focus to North America. Furthermore, he suggested that the recent drop in Bitcoin prices driven by developments in China allowed his company to amass more BTC for its holdings. 

Saylor Sees Long-Term Value In Bitcoin

Saylor was also asked if his company had considered the possibility of a prolonged decline in BTC value. To which he responded by saying that MicroStrategy’s Bitcoin purchases account for a ten-year time frame. 

The Bitcoin advocate also highlighted that the bellwether cryptocurrency is a “long-term trend” and “a million times more efficient than holding your property around on your back”. Saylor was also optimistic on the subject of crypto regulations and opined that regulators in Joe Biden’s administration were more informed about cryptocurrencies.

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