New regulation in China should change plans for Bitcoin miners
Chinese regulators and regulators issued two scary warnings in a week. The price of Bitcoin (BTC) has plummeted to $ 30,000, a value it has not reached since January. There is some evidence that Chinese Bitcoin (BTC) miners can take these alerts very seriously.
Cryptocurrency expert Dovey Wan, founding partner of Primitive Ventures, he is sure that the Bitcoin network (BTC) hashrate will fall further. It has already lost 30% since mid-May and is now estimated at 120 EH / s.
Image by Bitinfocharts
While the fall of the Bitcoin hashrate (BTC) in mid-April was probably attributed to the coal mine explosion in the province of Inner Mongolia, the continued fall may indicate that miners may begin to abandon China.
Ms. Wan admitted that many Chinese miners are preparing to move abroad. For them, the continued crackdown on Bitcoin mining (BTC) has been predicted since 2018. Therefore, they will relocate mining facilities outside of China.
She says the platforms will be transferred mainly to Pakistan, Kazakhstan and “other adjacent underdeveloped countries” that are traditionally friendly to Chinese businessmen.
In addition, some Chinese miners are attracted to low-cost electricity in Africa and are exploring opportunities to mine bitcoin (BTC) there, added Ms. Wan.
Bitcoin Mining 2.0
In the meantime, this migration may advance the flagship cryptocurrency’s position. Experienced Bitcoin (BTC) researcher Vijay Boyapati thinks that Bitcoin (BTC) will benefit from its ban in China.
Image via Twitter
If the Chinese government restricts mining activities, Bitcoin (BTC) entrepreneurs will have to look for opportunities to continue mining in less authoritarian countries.
As a result, as soon as the majority of miners leave China, the traditional “China FUD” will finally be discarded.
At the same time, prominent cypherpunk and CEO of Blockstream Bitcoin (BTC) development studio, Adam Back, is certain that China has never “really” banned Bitcoin (BTC). Therefore, all these scary alerts are nothing more than “lost translation” problems.
As reported by U.Today earlier, yesterday’s anti-Bitcoin (BTC) announcement resulted in a double-digit drop in the price of the king currency. Earlier this week, Bitcoin (BTC) reached $ 30,000, fueled mainly by China FUD.
However, moving Chinese Bitcoin facilities abroad will be a complicated and challenging process for mining giants. As a result, mining pools that have already established business outside of China can benefit more from this “exodus”.