The SCMP is Slowly Becoming a Megaphone for China

The Flooding

I have generally avoided Asian media outlets with a focus on home here in North America. But then this year’s flooding in China happened. What an eye opener!

With such a large amount of Bitcoin miners I was very interested to find out where flooding was occurring, if there was was still large scale physical locations of Bitcoin mining, and where are the concentrations located. China is very big and not all weather impacts the whole country. For example, the north is in a drought while the south flooded this year.

The Search for Reliable Information

This seems like an easy task but it was not because Chinese state media keeps news on a short-leash. In the end I spent a couple days on Twitter finding accounts with ground level info and videos. I then double and triple checked the information they were Tweeting to make sure it was real and finally found 6 accounts that seemed to be posting legitimate information.

An Introduction via Protests

This is where the South China Morning Post came in to play. During the last year and a half of protests & demonstrations in Hong Kong I mainly followed the Hong Kong Free Press. They seemed fair and the coverage was so good that I didn’t feel there was a need for many sources to bog down the info stream. I did read a bit from the SCMP so I was aware of the headline and writing styles.

The SCMP

Once the 2nd wave of flooding began to ravage Central China in the beginning of Summer I took in any Asian media I could scour for flooding reports. This of course lead me back to the South China Morning Post. But something was different. After nearly 1.5 years of protests and a strong legislative move towards Beijing based policy even this classic pro-independence publication had a clear shift is coverage and language.

What bothers me about the SCMP is that it was not a Pro-Communist publication, but it is clearly drifting. The South China Morning Post is not listed as state sponsored but it essentially has become that. Reporters are still trying to do good, but the editors have changed the narrative.

(END PART 1)

Disclosure. The author does not own any Alibaba or corporate instruments that are leverage for against any Asian entities listed in the article.

Disclaimer

Flooding in China Impacts Bitcoin Miners

Three Gorges Dam Inflows to Peak Wednesday

As I have been warning for the last 3-4 weeks, flooding has reached mining areas of Sichuan Province in China and operations are being impacted. Here is a thread showing the damages to the area and miners.

Disclosure. The author owns BTC.

Disclaimer

Capital Flight & Bitcoin

People often talk about “capital flight”, Bitcoin, and China.

But is it true? If it is then it must apply to Hong Kong too, right? Well…

This could be a 10K word essay, however charts tell a more detailed story with far less words.

The theory is this: Currency issues and/or restrictions in a country (notably China in the past) force the average person to seek shelter in more safe assets. One of those happens to be Bitcoin at times. So they say.

While it is true that CNY devaluations often happen with BTC prices rising, it is not true that the average citizen of a nation is trying to protect their savings.

We will quickly examine China & Hong Kong vs Argentina & Venezuela.

The first chart is Hong Kong. It shows no large deviation from the BTCUSD price chart. For comparison the second chart, Singapore, was added. It looks much like Hong Kong’s. This does not indicate that the average citizen is using Bitcoin as a channel for capital flight or as a safe haven.

The third chart is China. It shows even less interest as a safe haven. China and Hong Kong are seeing just the ripples of turbulence in their currency. Argentina and Venezuela is what happens if the damn breaks. In those countries we can clearly see Bitcoin is used by the public and is a safe haven. (see below)

Is Bitcoin a safe haven asset? Yes, but only once it’s too late. Maybe there’s a lesson to be learned here??

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