Evergrande — and China’s real, secret power over cryptocurrencies
And how China could become more crypto powerful anyway
N.B. This piece was originally written as a response to a great question from Meiletornado on the Evergrande + Bitcoin article, and wanted to fully flesh out the response and try to evoke more discussion from the Medium #Cryptocurrency community.
Will Evergrande get me rekt?
Evergrande definitely has the strongest potential to contribute to a black swan event.
So why hasn’t it gone truly down yet?
The buffer of huge institutional funds outside of China holding Bitcoin and USDT, is helping. But it’s a buffer, not a flood defence.
We’re watching it play out in slow-motion, especially with China’s recent moves to ban Bitcoin and cryptocurrency trading.
So what? Surely that makes things better for everyone, though? If they’re out of it, they can’t crash it, right?
Not if Evergrande holds cryptocurrencies, and not for Chinese citizens who have assets on exchanges.
The Chinese government haven’t banned themselves from trading crypto.
