John Carvahlo is a Bitcoin entrepreneur who believes that China’s whole BTC ban is not just a FUD. Carvahlo has a theory called, ‘Carvahlo’s Mind-Blowing Theory’, where he attempts to explain the reason behind China’s FUD.
Speculations for China’s FUD
There are several speculations for China’s FUD, including John’s mind-blowing theory. These are some of the speculations.
- China might be making way for their CBDC.
- The CPC might be cutting the wings of Chinese Billionaires in all areas.
- China might have been losing the hash power battle.
- It might be an ESG issue.
- They might have been closing the Exit ramps before the EverGrande collapses.
- Bitcoin might be too dangerous.
- Maybe Bitcoin would make China retire from the Billion Dollar business they are controlling.
Carvalho believes that China is not stupid in this whole Bitcoin FUD. China already made vast amounts of profit from the mining activities before banning Bitcoin mining.
China also controls the ASIC manufacturers; therefore, the mining machines inflate the value of the chips. China also controls businesses alongside South Korea and Taiwan, so it makes no sense for China to ban Bitcoin mining.
Disclaimer: John might easily be wrong because the text is only full of assumptions and speculations; he has no proof of the happenings in China or the theory, neither does Watcher Guru. This is simply a theory.
Carvalho’s Mind-Blowing Theory
China manipulates the Bitcoin cycle every quarter to purchase more Bitcoin. The country uses collateral to short prices and reaccumulates more Bitcoin during the dip. However, China was facing a more sophisticated market, and its FUD techniques were no longer working. Therefore, China had to pull the mining plug.
Leading ASIC Manufacturers
Bitman, the leading ASIC manufacturers in China, had a new generation of miners ready. Therefore, to create demand for the aftermarket and combine it with the FUD, it sold its Bitcoin, and China banned Bitcoin mining from turning off other ASICs companies. This sale blinded the world to look at the hashrate, which appeared accurate. China then sold a small portion of its ASICs to the US.
As of now, the USA is the provider of Bitcoin’s biggest hashrate. John tells the narrative that China has stupidly left mining activities to the USA. After China’s ban on Bitcoin, suddenly, US miners awakened. John says that this is all a facade.
Bitman to Supply Next-Gen ASICS
Therefore, China will come up again with the mining game after creating the ASICs shortage. China figured a way to get more Bitcoin against buyers and traders of ASICs in other countries. Selling old ASICs to countries like the US helped China get rid of old equipment and mining machines.
Bitman is set to supply miners in China with new Bitcoin mining machines soon. After that, China will buy back its Bitcoin and turn its next-generation ASICs on, pushing China to the top again.
Carvalho even believes that China has already completed this process and is not signing blocks; if not, China is signing the partnership differently. Therefore, China is set to remove the ban on Bitcoin mining, hence an $80k and $98k price prediction from crypto analysts, who have no idea the main reason for the gain, simply speculations.
China Laughs Loudest
Therefore, a resurrection of the Asian Ming narrative. This is just half the theory. Carvalho has more. I think this theory helps shed light on China’s Bitcoin FUD, despite it simply being speculation.